| Abstract: | This paper argues that ‘secondary materials’ — waste products — are now an integral part of the global commodities problem. It analyses the background to attempts being made in several advanced economies to intervene in secondary materials markets. The forms of intervention are exact analogues of those that have been tried, or are being considered, and centre on buffer-stock schemes which aim to stabilise prices. In turn, stabilised markets have been thought to be a prerequisite for increasing the long-run supply of secondary materials. The paper casts doubt on the usefulness of such schemes for a selected product — waste paper — and presents a simulation exercise for the existence of a buffer-stock scheme. |
