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1.3 Market failure

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Question 26

Extract B: Electronic waste (e-waste) in the consumer tech lifecycle

A study by the Global E-waste Monitor reveals that consumer electronics distributors and retailers are directly responsible for roughly 0.08 million tonnes of electronic waste (e-waste) annually. This is often driven by unsold inventory of older-generation devices and poor returns processing systems.

However, around 1.8 million tonnes of e-waste occurs earlier in the manufacturing and component supply chain before devices even reach retail shelves, highlighting significant information gaps. Component manufacturers struggle to coordinate with major tech brands, leading to over-ordering and the disposal of obsolete silicon chips and display panels. This requires upgrading real-time data networks to improve component demand forecasting.

At the final stage of the lifecycle, consumers discard or leave unused approximately 3.6 million tonnes of functional or easily repairable smartphones and laptops each year. This points towards irrational behaviour, where buyers discard devices with minor battery degradation or upgrade purely due to marketing-induced perceived obsolescence and impulse buying of new models. In response, some technology manufacturers are introducing modular repair kits, extending software support lifetimes, and launching educational campaigns to encourage long-term device retention.


Assess the extent to which 'information gaps' (Extract B) and 'irrational behaviour' (Extract B) are the main causes of electronic waste (e-waste).

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1.3 Market failure Questions

  1. A Level
  2. /Economics
  3. /1.3 Market failure