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Can smart policies solve the sand mining problem?
Michael Hübler1,2, Frank Pothen1
1Institute for Environmental Economics and World Trade, Leibniz University Hannover, Hannover, Germany.
Global sand scarcity necessitates sustainable solutions. A coordinated sand export tax and a novel "Sand Extraction Allowances Trading Scheme" can effectively manage sand mining, balancing economic development for exporters and importers.
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Area of Science:
- Environmental Economics
- Resource Management
- International Trade Policy
Background:
- Sand is a critical resource for global construction and land reclamation.
- Unsustainable sand extraction leads to significant ecological damage and social costs.
- Addressing global sand scarcity requires effective policy interventions.
Purpose of the Study:
- To analyze the sand trade between Southeast Asia and Singapore as a case study.
- To identify policy solutions for sustainable sand resource management.
- To balance economic growth with environmental protection in transboundary sand trade.
Main Methods:
- Model-based analysis of international sand trade dynamics.
- Economic impact assessment of proposed policy interventions.
- Simulation of a coordinated transboundary sand output tax.
Main Results:
- A coordinated transboundary sand output tax significantly reduces sand mining.
- Economic costs for the sand importer are minimal.
- Economic benefits for sand-exporting nations are slightly positive.
Conclusions:
- Policy interventions are crucial for mitigating the negative impacts of sand extraction.
- A coordinated sand export tax offers an effective solution for reducing sand mining.
- A "Sand Extraction Allowances Trading Scheme" can sustainably balance economic and developmental needs.

