Product Durability and Extended Producer Responsibility in Solid Waste Management
AbstractUsing a vintage durable good model, this paper investigates how extended producer responsibility (EPR) in waste management influences product durability and welfare. Four EPR instruments are discussed and compared with the benchmark in which producers do not receive price signals for waste disposal. In each case, EPR induces durability to increase. Under perfect competition the welfare change caused by EPR is unambiguously positive and one EPR instrument is even capable of implementing the first-best welfare optimum. In contrast, under imperfect competition EPR may lead to a welfare reduction. The analysis also compares EPR to non-EPR measures. Copyright Kluwer Academic Publishers 2003
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Bibliographic InfoArticle provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.
Volume (Year): 24 (2003)
Issue (Month): 2 (February)
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Web page: http://www.springerlink.com/link.asp?id=100263
extended producer responsibility; market structure; product durability; solid waste;
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