Industrial and textile waste trade: Multilayer network and environmental policy effects

Waste management is an international enterprise, and it is important to understand global flows of recyclable materials. The Pollution Haven Hypothesis (PHH) suggests that waste moves from high income nations with stringent environmental policy to low income nations with less environmentally stringent policy, by exploiting low labor and regulatory costs. This paper assesses the PHH thesis for slag/dross and textiles (SDT) wastes in PHH through novel integration of the multilayer network and gravity models. The multilayer network model generates network effect that quantifies interlayer connections of multiple waste trade networks. Instead of North-South movement of waste, North-North, South-South, and even South-North are shown. Results from the gravity model indicate that stringent waste management policies reduce both waste exports and imports. PHH is not found for slags/dross where high income countries are importing the waste, contradicting PHH. On the other hand, PHH is more evident between highly connected hubs and havens in SDT waste trade networks.