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The organization of extended producer responsibility in waste policy with product differentiation

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  • Fleckinger, Pierre
  • Glachant, Matthieu

Abstract

The paper analyzes the efficiency of extended producer responsibility (EPR) for waste management. We consider a vertically differentiated duopoly where endogenous market quality affects waste disposal costs. Each producer has to meet a take-back requirement that forces it to collect and treat the waste associated with its products. In line with reality, we assume that the producers either organize themselves individually or cooperate by setting up a producer responsibility organization (PRO). We study the various implementations of EPR. Central to the analysis is the trade-off between collusion through the PRO and market power in the waste industry.

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Bibliographic Info

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

Volume (Year): 59 (2010)
Issue (Month): 1 (January)
Pages: 57-66

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Handle: RePEc:eee:jeeman:v:59:y:2010:i:1:p:57-66

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

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Keywords: Extended producer responsibility Waste policy Product differentiation;

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  1. Fullerton, Don & Wu, Wenbo, 1998. "Policies for Green Design," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 36(2), pages 131-148, September.
  2. Rob F.T. Aalbers & Herman R.J. Vollebergh, 2005. "An Economic Analysis of Mixing Wastes," Tinbergen Institute Discussion Papers, Tinbergen Institute 05-094/3, Tinbergen Institute.
  3. Eichner, Thomas & Pethig, Rudiger, 2001. "Product Design and Efficient Management of Recycling and Waste Treatment," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 41(1), pages 109-134, January.
  4. 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.
  5. Margaret Walls & Paul Calcott, 2000. "Can Downstream Waste Disposal Policies Encourage Upstream "Design for Environment"?," American Economic Review, American Economic Association, American Economic Association, vol. 90(2), pages 233-237, May.
  6. repec:ltr:wpaper:1997.11 is not listed on IDEAS
  7. C. Lombardini-Riipinen, 2005. "Optimal Tax Policy under Environmental Quality Competition," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 32(3), pages 317-336, November.
  8. Marco Runkel, 2003. "Product Durability and Extended Producer Responsibility in Solid Waste Management," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 24(2), pages 161-182, February.
  9. Thomas Bue Bjorner & Lars Garn Hansen & Clifford S. Russell, 2002. "Environmental Labelling and Consumer's Choice - An Empirical Analysis of the Effect of the Nordic Swan," Vanderbilt University Department of Economics Working Papers, Vanderbilt University Department of Economics 0203, Vanderbilt University Department of Economics.
  10. Chongwoo Choe & Iain Fraser, 1997. "An Economic Analysis of Household Waste Management," Working Papers, School of Economics, La Trobe University 1997.11, School of Economics, La Trobe University.
  11. Arora, Seema & Gangopadhyay, Shubhashis, 1995. "Toward a theoretical model of voluntary overcompliance," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 28(3), pages 289-309, December.
  12. Takayoshi Shinkuma, 2003. "On the Second-best Policy of Household's Waste Recycling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 24(1), pages 77-95, January.
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Cited by:
  1. Valentina Iafolla & Massimiliano Mazzanti & Francesco Nicolli, 2010. "Rifiuti generati, rifiuti in discarica ed efficacia delle politiche ambientali in Europa," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, FrancoAngeli Editore, vol. 0(2), pages 103-135.
  2. Brice ARNAUD, 2014. "Extended Producer Responsibility and Green Marketing: an Application to Packaging," Cahiers du GREThA, Groupe de Recherche en Economie Théorique et Appliquée 2014-04, Groupe de Recherche en Economie Théorique et Appliquée.
  3. Norimichi Matsueda & Yoko Nagase, 2011. "An Economic Analysis of the Packaging Waste Recovery Note System in the UK," Discussion Paper Series, School of Economics, Kwansei Gakuin University 72, School of Economics, Kwansei Gakuin University, revised Jun 2011.
  4. Valentina Iafolla & Massimiliano Mazzanti & Francesco Nicolli, 2010. "Are You SURE You Want to Waste Policy Chances? Waste Generation, Landfill Diversion and Environmental Policy Effectiveness in the EU15," Working Papers, Fondazione Eni Enrico Mattei 2010.77, Fondazione Eni Enrico Mattei.
  5. Acuff, Kaylee & Kaffine, Daniel T., 2013. "Greenhouse gas emissions, waste and recycling policy," Journal of Environmental Economics and Management, Elsevier, Elsevier, vol. 65(1), pages 74-86.

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