Reuse economy under inter-regional perspective: Model, economic efficiency and policy implications

Over the past four decades, economists have investigated recycling. There are only a few economics literatures on the economics of reuse, referring to the economics of inter-regional reuse are more rare. Following Thomas Kinnaman & Hide-Fumi Yokoo (2011) two-country model, the author established the inter-regional reuse model to solve the negative externality associated with inter-regional reuse under the condition of close and open economy with four tax instruments combinations for achieving the economic efficiency between external inter-state and internal inter-regional, proved that effective tax policy combinations and subsidies measures are the path of achieving economic efficiency.