Primary resource use and voluntary recycling schemes: Dynamic issues in a global context

A simple dynamic model is developed to show that recycling schemes dependent on voluntary action may, in the long run, lead to greater use of primary materials. The agents are a primary-materials producer and a materials user (interpreted as global South and North). Northern producers of the final good are effectively subsidised by voluntary recycling efforts and their accumulation intensity rises to a degree which may offset the unit savings on primary materials. The most effective way to conserve primary sources in the long run is to reduce the Northern savings propensity.