Product or Waste? Importation and End-of-Life Processing of

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Environ. Sci. Technol. 2009, 43, 6010–6016

Product or Waste? Importation and End-of-Life Processing of Computers in Peru R A M Z Y K A H H A T * ,† A N D E R I C W I L L I A M S †,‡ Center for Earth Systems Engineering and Management, Department of Civil, Environmental and Sustainable Engineering, Arizona State University, Tempe, Arizona 85287, and School of Sustainability, Arizona State University, Tempe, Arizona 85287

Received December 17, 2008. Revised manuscript received April 27, 2009. Accepted June 2, 2009.

This paper considers the importation of used personal computers (PCs) in Peru and domestic practices in their production, reuse, and end-of-life processing. The empirical pillars of this study are analysis of government data describing trade in used and new computers and surveys and interviews of computer sellers, refurbishers, and recyclers. The United States is the primary source of used PCs imported to Peru. Analysis of shipment value (as measured by trade statistics) shows that 87-88% of imported used computers had a price higher than the ideal recycle value of constituent materials. The official trade in end-of-life computers is thus driven by reuse as opposed to recycling. The domestic reverse supply chain of PCs is well developed with extensive collection, reuse, and recycling. Environmental problems identified include open burning of copper-bearing wires to remove insulation and landfilling of CRT glass. Distinct from informal recycling in China and India, printed circuit boards are usually not recycled domestically but exported to Europe for advanced recycling or to China for (presumably) informal recycling. It is notable that purely economic considerations lead to circuit boards being exported to Europe where environmental standards are stringent, presumably due to higher recovery of precious metals.

1.0. Introduction Personal computers (PCs) are an important part of society as reflected by increasing ownership rates around the globe. Rates of PCs ownership in developed countries are high, for example, 80 PCs per 100 inhabitants in the U.S. in 2006 (1). Mass adoption of computers is also emerging in the developing world, with greater increases in major cities. Computer lifespan is decreasing with time, data on the United States academic and business sectors suggests a lifespan of 6 years from 1985 to 2000, 5.4 years in 2000, and 3 years in 2007 (2, 3). Increasing ownership and decreasing lifetime combine to lead to a growing volume of unwanted PCs that find their way to the different available postconsumer management options such as storage, reuse, recycle, exportation, incineration, or landfills (4). Unwanted PCs are * Corresponding author phone: 1-480-242-5610; fax: 1-480-9650557; e-mail: [email protected]. † Center for Earth Systems Engineering and Management. ‡ School of Sustainability. 6010

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computers deemed obsolete or unnecessary by a user and includes computers that will be reused via secondary markets or handled as waste via end-of-life management. Environmental concerns regarding this waste stream include exposure to toxic materials, particularly to informal recycling practices in the developing world. Environmental and human health damages produced by informal recycling are indisputable as shown by research and media coverage of informal electronic recycling sites located in China, India, Ghana, Nigeria, and others locations (5-9). In response to this growing waste stream, governments in different parts of the world have implemented electronics-related policies including takeback and recycling systems (e.g., WEEE in Europe), mandating content of hazardous materials (e.g RoHS in Europe) and managing the trade in end-of-life equipment (e.g., the Basel Convention) (10-12). The driving assumptions of these policies are primarily the following: due to the content of toxic materials in computers, landfilling of electronics is an environmental hazard and should be banned. Also, computers should be designed to contain fewer toxic materials; informal recycling of computers and other electronics should be managed by banning exports from the developed to the developing world; and the recycling of materials in electronics should be increased. In a previous article, we argue that while the above heuristics certainly have value, they do not account for complexities of electronics, sustainability, and globalization and thus are unlikely to appropriately manage environmental problems of concern (13). For example, banning the exportation of second-hand computers is unlikely to solve the environmental problem of informal recycling because domestic generation of e-waste in developing countries is growing rapidly. Also, the risk of toxics leaking from electronic waste in well-managed landfills is apparently very small so the benefits of landfills bans are unclear (13). Current policies do not promote reuse, despite evidence that extending the lifespan of a computer can significantly reduce life cycle environmental burdens. The manufacturing phase dominates many of the life cycle impacts of a computer, e.g., the energy consumed to make a computer used at home is four times higher than the energy consumed in operation (14). Policies should also address social and economic implications of the reverse supply chain. Computer reuse can have significant social value, especially in the developing world, yet the negative effects of current policies on reuse are rarely considered. Reusing a computer generates employment in the refurbishment industry and mitigates the digital divide in low income communities by increasing accessibility to affordable computers. Used PCs have a lower price than new PCs. The demand for operative used computers in emerging countries is considerable and/or growing, allowing the possibility of a second use of the device and the trade of used computers from developed to developing countries, presuming this trade is not banned. There is also demand for used computers within developed countries, for example donated computers are often reused in schools, libraries, and nonprofit learning organizations (15). This article examines three important and unresolved questions regarding international trade and processing of second-hand computers: (1) To what degree is the current trade in used computers driven by reuse versus recycling? If a substantial portion of the trade is about reuse, this implies higher social and environmental benefits. If the trade is driven by recycling, in particular informal recycling, benefits are lower and there is an even greater need to manage environmental impacts. 10.1021/es8035835 CCC: $40.75

 2009 American Chemical Society

Published on Web 06/12/2009

It is our view that regardless of the situation with international trade that informal recycling is an important problem that must be addressed. (2) What reuse and recycling systems have evolved in the developing world as governed by economic forces? While computer recycling in the U.S. and much of the developed world runs a net cost and thus must be mandated by policy, in the developing world a combination of lower wages, higher demand for reused computers, and lower environmental standards lead to recycling running a profit. This leads to the emergence of home-grown collection and recycling systems, which are important to understand. (3) What is the international character of a reverse supply chain in a developing country? The conventional picture is a two-point network, export of a computer from a developed country to a developing, then all reuse and recycling taking place in the importing country. Given the globalization of forward supply chains, it is also important to explore if and how reverse supply chains are also globalizing. These three questions are addressed through a case study of Peru. PCs ownership in Peru is growing, for example in the residential sector ownership increased from 8.0 in 2005 to 13.8 PCs per 100 households in 2007 (16). In Lima’s residential sector PCs ownership grew from 16.6 in 2005 to 25.9 PCs per 100 households in 2007 (16). There are two reasons to focus on Peru. One is that previous studies have focused on Asian countries such as China and India (5-8), and it is important to study the situation in Latin America. The second reason to focus on Peru is that its official trade database contains extensive details on used and new computers. Most trade statistics do not distinguish new versus used computers, Peru is an important exception. Existing work characterizing electronics reuse and recycling in Peru (or indeed any Latin-American country) is lacking. The main previous work is a recent study funded by the Swiss Federal Laboratories for Materials Testing and Research (EMPA) has done a preliminary assessment on the current and future fate of unwanted computers and cell phones in Peru (17). We build on this study by focusing on the above three questions, in particular the first and third, not addressed in the EMPA report. In addition to the official government data from the Peruvian Customs Agency, we perform a nonprobabilistic survey in main computer sales and services areas in Lima as well as interviews of main actors in computer end-of-life management such as collectors, dismantlers, recyclers, and exporters. To clarify how we address the above three questions using the three analytical tools (trade database, survey, and interviews): The first question of import for reuse versus recycling is explored through analysis of the trade database with corroboration, to the degree possible, with survey and interviews. For the second question we use the survey and interviews to construct a qualitative description of the network of processes involved in the collection, reuse and recycling of computers in Peru. We do not at this juncture attempt a quantitative analysis of material flows, economic and social benefits, and environmental impacts. For the third question we use the interviews and trade database to clarify what used computers and components are exported from Peru for what purpose.

2.0. Legality of the Second-Hand Computer Trade from U.S. to Peru It is important to first clarify the legality of trade in used computers to Peru. Trade is governed through both international and national regimes. At the international level, the pertinent global treaty is the Basel Convention, a multilateral environmental agreement addressing trade of wastes classified as hazardous (12). The Basel Convention requires prior

notification between signatories when trading wastes classified as hazardous. There is also a proposed amendment to the Convention, the so-called Basel Ban, which forbids international trade in all the materials categorized by the Convention as hazardous. This amendment has not been ratified and seems unlikely to be in the near future. Many categories of e-waste (not intended for reuse) are classified as hazardous waste targeted for prior notification. Products intended for reuse, however, are exempt from control. The Convention does not however, suggest how to establish the reusability of a given trade flow in practice, a nontrivial challenge (12). Peru is a signatory of the Basel Convection but is flexible in the definition of what consists of products for reuse, essentially exempting them from prior notification. Peru also has domestic policies which regulate the import of hazardous waste. Peruvian Customs has a list of prohibited and restricted items that includes hazardous solid waste under the Basel Convection, such as pharmaceutical waste (18). Used computers and parts are not however included in this list. In general Peru has a policy of allowing the entry of waste if it will be reuse as input in the productive activity of the country. The importation of waste will not be authorized however unless proper recycling or reuse which avoids negative impacts to human and environment is guaranteed (19). Furthermore, it is worth noting that the Peruvian Customs database includes categories for used, nonfunctional computer equipment, a clear indication that their import is considered legal. As will be seen in Section 4.0, many of the used computers imported to Peru come from the U.S. To check the legal status on the U.S. side of such exports, domestically the only relevant legislation is the cathode ray tube (CRT) rule associated with the Resource Conservation and Recovery Act (20). As long as exporters in the U.S. file a notification with the U.S. Environmental Protection Agency, CRT monitors can be exported for reuse. The U.S. signed but has not ratified the Basel Convention and thus has not implemented mechanisms for prior notification. As with importation to Peru, the Basel Convention has not specified a framework of the convention to distinguish between exempted electronics intended for reuse and hazardous e-waste which requires notification. It is our understanding that as long as U.S. exporters abide by the EPA’s CRT rule, export of used computers is legal on the U.S. side.

3.0. Materials and Methods 3.1. Government Level Data Collection. Government level trade data regarding imports of new and used computers was collected and analyzed for the years 2003-2007. The database was developed by Peruvian Customs and managed by the Peruvian National Superintendency of Tax Administration, SUNAT (21). This publicly available database includes tracking of trade in different Information, communication, and technology (ICT) devices. The database includes information on the characteristics of equipment, entry port, shipment port, condition (new or used; functional or nonfunctional), quantity, weight, cost insurance and freight price (CIF) for shipments of nonmobile personal computers (nmPC) and mobile personal computers (mPCs); laptops or notebooks. While the database contains disaggregated data regarding characteristics of the equipment such as type, speed, and brand of processor, this data is not distinguished by separate fields. Hence, we disaggregated such data by hand according to the following categories: brand, type, and speed of processor. There are two potential problems with using this database to represent trade in used computers: Accuracy of the data and the possibility of trade not registered in the database (black market). To discuss the accuracy of the database, first note that the information relies on importers properly filling VOL. 43, NO. 15, 2009 / ENVIRONMENTAL SCIENCE & TECHNOLOGY

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FIGURE 1. Importation of used and new nonmobile and mobile personal computers to Peru (nonmobile (nm) PCs and mobile (m)PCs) (21). in forms. Intentional and unintentional errors will affect data quality. Importers are motivated to make intentional errors if such errors result in economic savings. Tariffs on imported computers was between 4 and 7% from 2001 to 2005 and from 2006 this tariff was reduced to 0 (22). In general tariffs create a motivation to undervalue shipments, lower tariffs presumably reduces this motivation. The degree to which customs checks data is clearly important, thus we engaged in interviews with customs officials to clarify verification processes. The verification process has three levels: no check, documentation check, and physical shipment check. In the documentation check data on the form is compared with previous similar shipments. In a physical check customs visually inspects the content of a shipment and compares it with the full description of the equipment as required by SUNAT. Customs agents do not verify the functionality of imported computers. In case of mismatch when the container is physically checked, the importer will be fined. Overall, 15% of total containers undergo a physical check, with first time importers undergoing an initial mandatory check. The remaining inspections are random. Containers with used merchandise, however, have a higher probability of being checked (23). While it is difficult to judge how well these procedures result in accurate trade data, it is reasonable to assert that Peruvian Customs takes serious efforts to ensure accuracy. There could be black market trade in used and new computers invisible to the official statistics. While the trade is legal and tariffs are low, Peru has a value-added-tax (VAT) of 19%, a high value which creates an economic incentive for firms to engage in unofficial transactions. In the computer industry it is well-known that the desire to avoid the tax has led to illegal importation of new microprocessors, hard drives and RAM chips. Many locally assembled computers are known to contain illegally imported new parts (17, 24). While our interviews did not reveal an illegal trade in used and new computers, as with new parts the desire to avoid the tax could lead to an illegal trade. According to Fernando Grados, an expert in the Peruvian ICT market, there are no strong indicators that show an important black market of new and used computers (24). Quantifying the black market is a challenging task beyond the scope of our analysis. Our analysis of imports thus only applies to the official trade in 6012

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used and new computers. In addition, government data was also analyzed for exports of scrap printed circuit boards. 3.2. Survey. A survey with a convenience/nonprobabilistic sampling was performed in the two main PCs shopping areas in Metropolitan Lima: Wilson area and Leticia Street. These sites are thought to be representative of Peru’s computer assembly, refurbishing and sales activities. Lima is Peru’s capital and main urban area, with a population of more than 8 million, or 30% of Peru’s total population (25). The survey questions are listed in the Supporting Information (S.1). The Wilson area is Lima’s main informatics cluster and the main sector for the local “white box” industry, or locally nonbranded assembled computers. It is estimated that around 60% of Peruvian assembled computers come from the Wilson area (26). Even though assembly computer practices may use new or used parts, or a combination of both, Wilson area is mainly dedicated to the use of new parts. In addition, the Wilson area is also known for the used PCs market, mainly of international origin. Leticia Street is identified as the market for used computer parts and used and assembled (using used and new parts) PCs. 3.3. Interviews. Computer end-of-life practices in Lima were assessed via site visits and interviews. The interviews were performed in July 2007 and July 2008. We interviewed the main actors of the computer end-of-life management on the capital, such as collectors, dismantlers, exporters; circuit boards and computer plastics, and steel and copper foundries. A set of questions were prepared for each type of interview. The average time for each survey was around 20 min. The interview questions are listed in the Supporting Information (S.2).

4.0. Importation of Used and New Personal Computers Figure 1 presents the importation of nmPCs (e.g., desktops) and mobile computers (mPCs e.g. laptops), classified by condition; used (functional or not functional) or new, for the years 2003-2007 (21). Overall, the total amount of imported computers increased with time. mPCs showed the most sharply increasing growth, with an annual growth of around 91% between 2006 and 2007. While the importation of new nmPCs is increasing every year and surpassing the importation of used computers as shown in 2006 and 2007, used

FIGURE 2. Distribution of used nmPCs by type of processor for 2003-2007 (21). nmPCs do not show a clear and definite trend. Moreover, the shares of used nmPCs if compared with the total imported nmPCs were 53, 59, 56, 48, and 39% for 2003, 2004, 2005, 2006, and 2007, respectively. This decreasing trend share could be a result of lower prices of new computers and a recent economic boom in Peru (24). The U.S. was identified as the main source, with shares ranging from 57 to 76%, the remainder largely due to imports from Panama, Norway, Mexico, and Korea. In the case of Panama however it is reasonable to expect that used computers had a different origin, probably the U.S. To verify this assumption we interviewed two of the main importers of used computers to Peru that according to the Peruvian Customs database imported used nmPCs from Panama. According to the interviews, all their imported used nmPCs came from the U.S. and not from Panama. A more detailed discussion of trends can be found in the Supporting Information (S.3). The distribution of brands of imported used PCs is similar to market share of new PCs in the U.S. (discussed further in the Supporting Information, S.3) (27). It is important to note however that the national assembly industry dominates the Peruvian nmPCs market. According to Durand-Chaud, 275,000 new nmPCs were sold in the first half of 2008, from which 80% were assembled in Peru and 68% came from the Peruvian unbranded assembly sector. The market for mPCs however is dominated by branded computers: while 156 000 new mPCs were sold in the first half of 2008, only 3% came from the Peruvian nonbranded assembled mPC industry (28). Detailed information regarding computer assembly and sales can be found in the Supporting Information (S.4)

5.0. Characterization of Used nmPCs Imported to Peru An important and open question regarding trade in endof-life computers is the degree to which traded equipment is reusable and of reasonable quality versus waste intended for recycling (often informal and environmentally damaging). In this section we address this question through detailed analysis of the types and shipment value (cost, insurance, and freight) of computers imported. The trade database allows such analysis as it tracks individual shipments information including value, number of units, and main processor. The distribution of processor types in imported nmPCs shipments for the years 2003-2007 is shown in Figure 2. As expected, there is a trend toward more recent technology. One can use the original introduction years of these processors in the U.S. to estimate the lifetime that used imported nmPCs had in the original country. Pentium III and IV processors entered the market between 1999-2003 and

2000-2007, respectively. Assuming average adoption 6 months after appearance in market, and 6 months for the computer to reach Peru after disposal, the result is a first lifespan of 3-7 years for Pentium III and less than 6 years for Pentium IV processors. Figure 3 shows the per unit shipment value (CIF) distribution for used nmPCs with Pentium III and IV processors for 2006 and 2007. 5.1. Reuse versus Recycling. These trade statistics describe prices and characteristics of imported used computers. How can this data inform the question of whether these computers were imported for reuse versus recycling? We base our approach on this premise: to justify the trade any computer imported for recycling must generate income from the recovered materials at least equal to the price paid. The economic value of materials in a computer can be estimated by combining the bills of materials for a machine with materials prices. We undertake such an analysis; the results are shown in Table 1. In 2006 and 2007 the total value of recyclable materials in a nmPC control unit were US$ 16 and 18, respectively (14, 29-31). Note that this is the upper bound on recoverable value, in practice recycling processes do not recover 100% of recyclable materials contained, in particular plastics. In addition, recycling incurs costs, not included here, thus this is an upper bound on recoverable value. Examining the distribution of shipment values (CIF), 87-88% of all imported used computers had a price higher than the total value of recyclable materials contained. We can safely assert that these computers are destined for reuse. In addition, nonideal recovery rates and expenses associated with recycling imply that an additional unknown fraction of computer with shipment value less than US$16 and 18 are also reused. A low shipment value of exported e-waste is possible indication of exportation for recycling purposes (32). For this reason and according to our assessment, Peru’s official importation of nmPCs is mainly to satisfy the demand of computers in the country and not to feed the computer recycling industry. Note however that as mentioned in Section 3.1 that illegal trade may exist with different reuse versus recycle characteristics.

6. Computer Recycling System in Lima 6.1. Collection. As in many other developing country cities in the world, Lima has an informal collection system for reusable and recyclable waste. The case of computers is no exception. In the residential sector, unwanted computers are scavenged by informal collectors before waste is taken by the municipal collection system. Moreover, in some cases unwanted computers, are sold by residents to informal street buyers. After collection, the most common path followed is VOL. 43, NO. 15, 2009 / ENVIRONMENTAL SCIENCE & TECHNOLOGY

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FIGURE 3. The quantity of imported used PIII and PIV nmPCs versus computer value as measured by CIF (cost, insurance and freight) shipment value (21).

TABLE 1. Total Weight and Value of Materials with Recyclable Value Found in a Desktop Computer (W/O Monitor) in 2006 and 2007 (14, 29-31) material

weight (kg)

average price per material/ part 2006 (US$/kg)

average price per material/ part 2007 (US$/kg)

economic value 2006 (US$)

economic value 2007 (US$)

aluminum copper gold lead nickel palladium plastics silver steel tin

0.44 0.67 0.00025 0.027 0.02 0.00011 0.65 0.001 6.12 0.05

2.57 6.72 19,400 1.30 24 10,382 0.25 370 0.44 9

2.64 7.12 22,400 2.60 37 11,489 0.25 430 0.52 15

1.13 4.50 4.88 0.04 0.44 1.15 0.16 0.37 2.72 0.42 16

1.16 4.77 5.64 0.07 0.68 1.27 0.16 0.43 3.19 0.71 18

that informal collectors offers their merchandise to an informal market dedicated to all kinds of reusable and recyclable merchandise. In this market computers and parts are bought by a second group of collectors specializing in electronics. Subsequently, products are offered in a specialized market for computer and parts reuse and recycling. For business, government, and academic sectors, endof-life of computers usually take a different path, mainly auctions or donations. However, the path described for the residential sector also occurs. Donations are usually made to employees or charitable institutions. Auctions are held in different locations of the capital where computers are offered to employees and the public. Buyers (reusers, recyclers, or informal brokers) gather at these auctions to buy computers, computer parts, monitors and others, for future reuse or recycling. 6.2. Dismantling. Collected computers end up either with reuse firms or recyclers. If the device is deemed not worth reselling or refurbishing, it is passed on to the dismantling channel. Dismantling is done by hand and parts are separated and evaluated for sale to reuse or recycle sectors. Parts separable to single materials such as copper, steel, aluminum and plastics are sold for recycling. Table 2 summarizes the paths taken by computer main parts and materials. 6.3. Recycling Processes. In the case of computers, copper, steel, and aluminum parts are recycled domestically, usually in local foundries. 6014

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Some metal buyers and foundries will not accept unclean metals, such as wires with plastic insulation attached. For copper cables, removal of the insulation is often done by open burning under similar practices as reported in China, India, and Ghana (5, 6, 9, 33, 34). This informal recycling is usually done far from the city perimeter. It is important to note that open burning of insulated copper cables generates high emissions to the air of polychlorinated dibenzodioxins and dibenzofurans, negatively impacting the environment and human health (33, 34). High emissions of these pollutants have been confirmed in laboratory simulations (35). Some plastics found in computers cases, keyboards and CRT monitors are exported to China, after having been compacted locally. Printed circuit boards are usually exported to China or Europe. In Lima, there are two formal companies currently involved in the formal export of printed circuit boards to one of the two destinations. Circuit boards shipped to Europe reportedly go to the Aurubis smelter in Germany. Circuit boards exported to China are presumably informal recycled, though we could not verify this. It is important to note the existence of both exportation paths implies that formal and informal recycling of circuit boards is economically competitive. For an entire computer informal recycling has a decided economic advantage over formal recycling, but the situation apparently changes at the circuit board level. This is presumably due to the higher rates of material recovery

TABLE 2. Main Paths Followed by Computer Parts and Materials (7, 8, 13, 33, 34, 37) part/material

final path

aluminum

local foundries

circuit boards

exportation to China and Europe

copper cables

local foundries

crt glass

local landfills

microprocessors

local recycling or exportation

plastics on keyboards, CRT case, PC case steel

environmental concern (7, 8, 13, 33, 34, 37)

purpose aluminum recovery

toxic emissions when recycled informally dioxin and other emissions due to burning wire insulation toxic emissions when recycled informally

metal recovery copper recovery gold recovery

exportation to China, local landfills

plastic reuse

local foundries

steel recovery

possible with advanced metallurgical techniques (36). The interviews also reveled that depending on the gold content circuit board are sometimes recycled domestically for gold recovery using hydro-metallurgical processes. Microprocessors can follow two paths; exportation, mainly to China, or domestic recycling, for gold recovery. The use of acids, cyanide, and/or and mercury to extract gold and other precious metals is common in this recycling activity and if improperly handled will severely affect the environment and human health (8, 37). 6.4. Solid Waste Management. After recycling there are residuals such as CRT glass which end up as solid waste. This waste is disposed typically in open dumps or unlined and poorly managed landfills. While the risk of toxics leaching from e-waste in well managed sanitary landfills is apparently small (13), the situation could be very different for unlined and/or poorly managed landfills often found in developing countries. It is important to study the risk when e-waste is put into such landfills. Finally, there are also formal IT end-of-life management options, though still on a small scale. Businesses sometimes contract recycling companies to handle IT equipment, who ensure practices such as data destruction and environmentally sound end-of-life management including disposal of residuals into industrial landfills (17). A figure showing life paths for computers is included in the Supporting Information (S.6).

7. Discussion A main result of this study is that the official trade in used computers is oriented toward reuse as opposed to recycling. There could be illegal trade, however, the extent and character of which are as yet unknown. The nature of the used computer trade in other countries such as China and India is also still uncertain. We have shown how to use official trade statistics, when available, to characterize if trade is reuse versus recycling oriented. More work is needed both to learn from official statistics from other countries as well as find new ways to characterize illegal trade. A second result is that even without explicit recycling legislation, an informal system has emerged which is efficient in the sense that computers are extensively collected, reused and recycled. This generates employment as well as increases the accessibility to technology to low income families and small businesses. There are three environmental challenges identified. The first, open burning of wires, is almost certainly a major problem. The second, disposal of wastes such as CRT glass (containing lead and other toxics) into landfills which may not be sufficiently secure to prevent leaching is potentially an environmental risk and the third, hydrometallurgic recovery of gold from microprocessors and circuit boards.

A third result, based on trade statistics and interviews, is new evidence that some computer parts are exported (reexported) for recycling in Europe and China. It is crucial to note that European smelters are apparently competitive with informal recycling. Further research is needed to understand this flow and to understand why in China and India informal recycling of circuit boards is prevalent. Our broad conclusion is that there are opportunities and costs in the trade and processing of used computers. The high degree of reuse is encouraging, as are the employment and accessibility benefits. The trade from Peru to Europe highlights the possibility of an international reverse supply chain in which difficult process steps such as recovery of precious metals from circuit boards are done safely and efficiently. On the other hand, the currently unregulated system also presents problems such as open burning and potential leaching of toxics from landfills. These need to be addressed. As we have argued elsewhere (13, 38) end-of-life management of computers can be viewed not only as an environmental problem but also as an opportunity with social and economic benefits for developing countries such as Peru. Integrated regulatory frameworks should be considered which aim to protect the environment while maintaining social and economic advantages.

Acknowledgments This work was supported in part by the U.S. National Science Foundation via Grant CBET-0731067 in the Environmental Sustainability program. We thank Sandra Roca Servat, Hugo Destaillats, Witman Esquivel, Zachary Pirtle, interviewees (electronic dismantlers, collectors and recyclers, foundries, and exporters), survey participants, and the manuscript reviewers for their valuable help and/or comments on this paper.

Supporting Information Available Additional discussion of the methodology and result, survey questionnaire and interview questions. This material is available free of charge via the Internet at http://pubs.acs.org.

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