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Pricing products? negative externalities at end-of-life using eco-modulation: Discussion from case studies

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  • Eug?nie Joltreau

Abstract

Does an efficient and flexible mechanism exist to address negative externalities of products, or are we doomed to grow the list of product standards? In this paper, I open the discussion whether eco-modulation in the framework of collective extended producer responsibility (EPR) could be able to spur the design of more environmentally sound products at end of life. In Europe, EPR for final products has mainly been implemented in the form of collective systems, where producers pay a fee per quantity of items placed on the market to a central organisation. This compliance fee represents the average cost of treating waste for a given product stream. Since waste management costs are averaged across producers, such collective EPR schemes have been criticised for hindering individual internalisation of products? end-of-life externalities. To deal with these critiques, French public authorities have imposed eco-modulation to EPR collective systems. Eco-modulation consists in penalising or rewarding individual design choices of producers, using financial incentives. The European Commission is now planning to revise its directive Dir. 1994/62/EC to provide guiding principles on eco-modulation for packaging for all EPR organisations across Europe. In general, eco-modulation is becoming increasingly relevant on the European scene. Therefore, I aim at reflecting on the efficiency of eco-modulation in addressing products? negative externalities at end-of-life, by analysing early feedbacks and data from French EPR systems.

Suggested Citation

  • Eug?nie Joltreau, 2018. "Pricing products? negative externalities at end-of-life using eco-modulation: Discussion from case studies," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2018(1), pages 149-172.
    • Handle: RePEc:fan:efeefe:v:html10.3280/efe2018-001007
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    References listed on IDEAS

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    1. Brouillat, Eric & Oltra, Vanessa, 2012. "Extended producer responsibility instruments and innovation in eco-design: An exploration through a simulation model," Ecological Economics, Elsevier, vol. 83(C), pages 236-245.
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    Cited by:

    1. Eugénie Joltreau, 2022. "Extended Producer Responsibility, Packaging Waste Reduction and Eco-design," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 83(3), pages 527-578, November.

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    More about this item

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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