Derek Kellenberg, Arik Levinson, 01 March 2014

Economic theory predicts that international environmental agreements will fail due to free-rider problems, and previous empirical work suggests that such agreements do not in fact reduce emissions. This column presents evidence that the Basel Convention and Ban on trade in hazardous waste has also been ineffective. The authors find no evidence that Annex-7 countries that ratified the Ban slowed their exports to non-Annex-7 countries as the agreement requires.

Oriana Bandiera, Andrea Prat, Tommaso Valletti, 21 April 2008

What determines how efficiently a certain public service is provided? The authors of CEPR DP6799 use a dataset of procurement prices paid by Italian public bodies to disentangle the effect of active waste (overpricing that benefits the decision-maker directly, like bribing) and passive waste (overpricing due to sheer inefficiency). The results indicate that passive waste accounts for 83% of the total estimated waste.

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