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Modeling packaging waste policy instruments and recycling in the MENA region

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  • Loukil, Faten
  • Rouached, Lamia

Abstract

This paper presents a vertical differentiation model of packaging waste policy instruments and discusses its application in the MENA region, where industrialization has been associated with an increase in packaging waste. We propose to test the effectiveness of eco-tax policy associated with a recycling subsidy (deposit–refund) in reducing the environmental impact of packaging waste. In this model, producers, consumers and the government are responsible for the collection of packaging waste. We evaluate the merit of using a combination of a tax and a subsidy and defines a policy that provides incentives to each actor involved in the process of packaging waste. The model's originality is related to consumer involvement through incentives in packaging waste management. Our analysis suggests that the taxation of producers is necessary but insufficient to ensure the internalization of externalities. The success of instruments such as deposit–refunds in practice depends largely on consumers’ willingness to offset environmental damages due to waste. Therefore, efforts in the MENA region should be oriented to increase consumers’ and producers’ awareness of the environmental risks posed by packaging waste.

Suggested Citation

  • Loukil, Faten & Rouached, Lamia, 2012. "Modeling packaging waste policy instruments and recycling in the MENA region," Resources, Conservation & Recycling, Elsevier, vol. 69(C), pages 141-152.
    • Handle: RePEc:eee:recore:v:69:y:2012:i:c:p:141-152
    DOI: 10.1016/j.resconrec.2012.09.012
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    1. Lili Ding & Zhimeng Guo & Yuemei Xue, 2023. "Dump or recycle? Consumer's environmental awareness and express package disposal based on an evolutionary game model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6963-6986, July.

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    More about this item

    Keywords

    Packaging waste; Eco-tax; Consumer implication; Deposit–refund system; MENA region; Vertical differentiation model;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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