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Product Design and Efficient Management of Recycling and Waste Treatment

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  • Eichner, Thomas
  • Pethig, Rudiger

Abstract

Using a general equilibrium model where material is first extracted, then used for producing a consumption good, recycled and finally treated to reduce environmental damage, we study efficiency-restoring policies, when one or more of the constituent markets are inactive. The material is modeled as being embodied in the output and forms an important aspect of green product design. If all markets for embodied material per unit output fail and if recycling benefit exceeds environmental damage, the policy instruments needed for green design are a tax on the consumption good supply and a subsidy on the demand for material input.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 41 (2001)
Issue (Month): 1 (January)
Pages: 109-134

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Handle: RePEc:eee:jeeman:v:41:y:2001:i:1:p:109-134

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Web page: http://www.elsevier.com/locate/inca/622870

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References

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  1. Don Fullerton & Thomas C. Kinnaman, 1993. "Garbage, Recycling, and Illicit Burning or Dumping," NBER Working Papers 4374, National Bureau of Economic Research, Inc.
  2. Fullerton, Don & Wu, Wenbo, 1998. "Policies for Green Design," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 36(2), pages 131-148, September.
  3. Miedema, Allen K., 1983. "Fundamental economic comparisons of solid waste policy options," Resources and Energy, Elsevier, Elsevier, vol. 5(1), pages 21-43, March.
  4. Palmer, Karen & Walls, Margaret & Sigman, Hilary, 1996. "The Cost of Reducing Municipal Solid Waste," Discussion Papers, Resources For the Future dp-96-35, Resources For the Future.
  5. Palmer, Karen & Walls, Margaret, 1997. "Optimal policies for solid waste disposal Taxes, subsidies, and standards," Journal of Public Economics, Elsevier, Elsevier, vol. 65(2), pages 193-205, August.
  6. Anni Huhtala, 1997. "A Post-Consumer Waste Management Model for Determining Optimal Levels of Recycling and Landfilling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 10(3), pages 301-314, October.
  7. Morris Glenn E. & Holthausen Jr. Duncan M., 1994. "The Economics of Household Solid Waste Generation and Disposal," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 26(3), pages 215-234, May.
  8. Rousso, Ada S. & Shah, Shvetank P., 1994. "Packaging Taxes and Recycling Incentives: The German Green Dot Program," National Tax Journal, National Tax Association, National Tax Association, vol. 47(3), pages 689-701, September.
  9. Highfill, Jannett & McAsey, Michael, 1997. "Municipal Waste Management: Recycling and Landfill Space Constraints," Journal of Urban Economics, Elsevier, Elsevier, vol. 41(1), pages 118-136, January.
  10. Dinan Terry M., 1993. "Economic Efficiency Effects of Alternative Policies for Reducing Waste Disposal," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 25(3), pages 242-256, November.
  11. Holtermann, Sally, 1976. "Alternative Tax Systems to Correct for Externalities, and the Efficiency of Paying Compensation," Economica, London School of Economics and Political Science, London School of Economics and Political Science, vol. 43(169), pages 1-16, February.
  12. Smith, Vernon L, 1972. "Dynamics of Waste Accumulation: Disposal Versus Recycling," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 86(4), pages 600-616, November.
  13. Rafael Lusky, 1976. "A Model of Recycling and Pollution Control," Canadian Journal of Economics, Canadian Economics Association, Canadian Economics Association, vol. 9(1), pages 91-101, February.
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