IDEAS home Printed from https://ideas.repec.org/a/kap/decono/v166y2018i1d10.1007_s10645-017-9306-7.html
   My bibliography  Save this article

Ex-Post Evaluation of Competition Law Enforcement Effects in the German Packaging Waste Compliance Scheme Market

Author

Listed:
  • Arno Rasek

    (Bundeskartellamt (German Federal Cartel Office))

  • Florian Smuda

    (Bundeskartellamt (German Federal Cartel Office))

Abstract

We provide an ex-post evaluation of the impact of competition law enforcement activities in the German packaging waste compliance scheme market. Until 2003, the non-profit compliance scheme DSD enjoyed a monopoly in the market. Numerous antitrust cases, however, paved the way for competitive market structures. We show that these enforcement activities resulted in a series of market entries since 2004, a corresponding drop in DSD’s market share, increased innovation and substantial efficiencies. Furthermore, we apply a difference-in-differences approach to show that prices decreased by 63% and to estimate the aggregated consumer welfare gains achieved by 2011 at a total of €13 billion. In the given case imposing a non-profit obligation on the monopolist did not substitute for the efficiency-enhancing effects of competition.

Suggested Citation

  • Arno Rasek & Florian Smuda, 2018. "Ex-Post Evaluation of Competition Law Enforcement Effects in the German Packaging Waste Compliance Scheme Market," De Economist, Springer, vol. 166(1), pages 89-109, March.
    • Handle: RePEc:kap:decono:v:166:y:2018:i:1:d:10.1007_s10645-017-9306-7
    DOI: 10.1007/s10645-017-9306-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10645-017-9306-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10645-017-9306-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Schinkel, Maarten Pieter & Spiegel, Yossi, 2017. "Can collusion promote sustainable consumption and production?," International Journal of Industrial Organization, Elsevier, vol. 53(C), pages 371-398.
    2. Florian Smuda, 2014. "Cartel Overcharges And The Deterrent Effect Of Eu Competition Law," Journal of Competition Law and Economics, Oxford University Press, vol. 10(1), pages 63-86.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Salvatore Piccolo & Giancarlo Spagnolo, 2014. "Debt, Managers and Cartels," CSEF Working Papers 365, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    2. Jinyan Peng & Kai Li & Yingpeng Gao, 2022. "How the Internet Affects China’s Green Consumption Development: Empirical Research Based on Baidu Index Data," Sustainability, MDPI, vol. 15(1), pages 1-16, December.
    3. Budzinski, Oliver & Stöhr, Annika, 2023. "Wettbewerb und Nachhaltigkeit in Deutschland und der EU: Ökonomische Einschätzung der Studie im Auftrag des Bundesministeriums für Wirtschaft und Klimaschutz," Ilmenau Economics Discussion Papers 179, Ilmenau University of Technology, Institute of Economics.
    4. Roberto Amaral-Santos & Ariaster Chimeli & Joao Paulo Pessoa, 2023. "Natural Gas Vehicles: Consequences to Fuel Markets and the Environment," Working Papers, Department of Economics 2023_07, University of São Paulo (FEA-USP).
    5. Pessoa, Joao Paulo & Santos, Roberto Amaral & Chimeli, Ariaster, 2023. "Natural Gas Vehicles: Consequences to Fuel Markets and the Environment," SocArXiv 7tvgy, Center for Open Science.
    6. Schinkel, Maarten Pieter & Spiegel, Yossi & Treuren, Leonard, 2022. "Production agreements, sustainability investments, and consumer welfare," Economics Letters, Elsevier, vol. 216(C).
    7. Eric Langlais & Maxime Charreire, 2020. "Should environment be a concern for competition policy when firms face environmental liability ?," EconomiX Working Papers 2020-25, University of Paris Nanterre, EconomiX.
    8. Van Moer, Geert, 2022. "Horizontal agreements about the use of a natural resource," MPRA Paper 113878, University Library of Munich, Germany.
    9. Piccolo, Salvatore & Pignataro, Aldo, 2018. "Consumer loss aversion, product experimentation and tacit collusion," International Journal of Industrial Organization, Elsevier, vol. 56(C), pages 49-77.
    10. Iwan Bos & Stephen Davies & Peter L. Ormosi, 2014. "The deterrent effect of anti-cartel enforcement: A tale of two tails," Working Paper series, University of East Anglia, Centre for Competition Policy (CCP) 2014-06v2, Centre for Competition Policy, University of East Anglia, Norwich, UK..
    11. Baumann, Florian & Charreire, Maxime & Cosnita-Langlais, Andreea, 2020. "Market collusion with joint harm and liability sharing," International Review of Law and Economics, Elsevier, vol. 62(C).
    12. Harrington, Joseph E., 2014. "Penalties and the deterrence of unlawful collusion," Economics Letters, Elsevier, vol. 124(1), pages 33-36.
    13. Nigar Hashimzade & Gareth Donald Myles, 2017. "Do Corporate Environmental Contributions Justify the Public Interest Defence?," CESifo Working Paper Series 6755, CESifo.
    14. Mathias Dewatripont & Jean Tirole, 2022. "The Morality of Markets," Working Papers ECARES 2022-35, ULB -- Universite Libre de Bruxelles.
    15. Hüschelrath, Kai & Peyer, Sebastian, 2013. "Public and private enforcement of competition law: A differentiated approach," ZEW Discussion Papers 13-029, ZEW - Leibniz Centre for European Economic Research.
    16. Mariana Cunha & Filipa Mota, 2020. "Coordinated Effects of Corporate Social Responsibility," Journal of Industry, Competition and Trade, Springer, vol. 20(4), pages 617-641, December.
    17. Roman Inderst & Eftichios S. Sartzetakis & Anastasios Xepapadeas, 2023. "Firm Competition and Cooperation with Norm‐Based Preferences for Sustainability," Journal of Industrial Economics, Wiley Blackwell, vol. 71(4), pages 1038-1071, December.
    18. Moritz Birgit & Becker Martin & Schmidtchen Dieter, 2018. "Measuring the Deterrent Effect of European Cartel Law Enforcement," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(3), pages 1-27, July.
    19. Choné, Philippe & Linnemer, Laurent, 2020. "Linear demand systems for differentiated goods: Overview and user’s guide," International Journal of Industrial Organization, Elsevier, vol. 73(C).
    20. Comisión Nacional de los Mercados y la Competencia (CNMC), 2023. "Guide. Competition against inflation: How competition and efficient regulation help protect the purchasing power of consumers," Colección Estudios de Mercado G-2022-02_ENG, Comisión Nacional de los Mercados y la Competencia (CNMC).

    More about this item

    Keywords

    Ex post evaluation; Competition law enforcement; Compliance scheme; Packaging waste; Non-profit company; De-monopolization; Consumer welfare effects;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:decono:v:166:y:2018:i:1:d:10.1007_s10645-017-9306-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.