Prague Economic Papers 2026, 35(2):166-195 | DOI: 10.18267/j.pep.910

What Drives the Global Waste Trade? Pollution Haven or Resource Hunting

Dan Liu ORCID..., Bowen Li ORCID..., Zijing Zhang ORCID..., Xinyu Zhang ORCID...
Dan Liu, School of International Economics and Trade, Dongbei University of Finance and Economics, Dalian, China.
Bowen Li (Corresponding author), School of International Business, Zhejiang Yuexiu University, Shaoxing; Shanghai Academy of Global Governance and Area Studies, Shanghai International Studies University, Shanghai, China.
Zijing Zhang, Dalian University of Technology, Bank of Dalian Postdoctoral Workstation, Dalian Administrative Institute, Dalian, China.
Xinyu Zhang, School of International Economics and Trade, Dongbei University of Finance and Economics, Dalian, China.

In recent decades, the cross-border flow of waste has become increasingly active globally, with existing research primarily attributing this trend to the pollution haven hypothesis. This study re-examines the drivers of global waste trade and explores their implications for sustainability. Using panel data from 117 countries between 1996 and 2020, we find that both developed and developing economies import waste products as resources. However, the resource hunting motive declines and shifts toward higher-value waste when importers adopt recycling policies. When developed exporters implement such policies, importers increase trade value due to lower matching costs. The pollution haven motive drives some waste exports from developed to developing economies, but trade value declines when destination countries strengthen recycling policies. This study deepens understanding of global waste trade and provides empirical insights for policymaking to better balance resource utilization and environmental sustainability.

Keywords: global waste trade; resource demand; pollution haven; environmental regulation; developing economies; developed economies
JEL classification: F18, P28, Q56, Q58

Received: September 1, 2025; Revised: January 29, 2026; Accepted: February 23, 2026; Published: June 22, 2026  Show citation

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Liu, D., Li, B., Zhang, Z., & Zhang, X. (2026). What Drives the Global Waste Trade? Pollution Haven or Resource Hunting. Prague Economic Papers, 35(2), 166-195. doi: 10.18267/j.pep.910
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