Asbestos fibre supply and the regulation of asbestos exposure

Abstract The USA and Canada are each considering measures to reduce general exposure to asbestos. Product bans and workplace exposure rules may each reduce general exposure by reducing domestic asbestos demand. The effectiveness of demand-reducing measures will depend upon the elasticity of asbestos supply to the domestic market. This paper provides calculations of this elasticity for three fibre grade groupings, using a framework that recognizes international trade in asbestos and the joint product nature of most asbestos fibre production. The results suggest that reductions in North American demand result in relatively substantial changes in asbestos use but very small changes in price.