The global supply chain encompasses not only good production but also the byproduct of waste. Do firms exploit this property to benefit domestic production? Utilizing China’s Solid Waste Import Ban (CSWIB) as a regulatory shock, we observe that the Producer Price Index (PPI) for U.S. waste-generating industries rose by 2.94% due to increased production costs post-CSWIB. Furthermore, firms within waste-generating sectors also exhibit a 6.49% drop in Tobin’s Q. Our findings suggest that global waste management significantly affects inflation and firm valuation in the U.S., which carry important normative implications for global green transitions.
@article{CSWIB,title={Ripple Through Garbage: The Impact of China's Solid Waste Import Ban on U.S. Firms},author={Chen, Tao and He, Sherry Xinyao and Sun, Stephen Teng and Zhang, Hong},journal={Working Paper},year={2024}}