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Product Durability and Extended Producer Responsibility in Solid Waste Management

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  • Marco Runkel

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Abstract

Using 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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File URL: http://hdl.handle.net/10.1023/A:1022800206337
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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 24 (2003)
Issue (Month): 2 (February)
Pages: 161-182

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Handle: RePEc:kap:enreec:v:24:y:2003:i:2:p:161-182

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Web page: http://www.springerlink.com/link.asp?id=100263

Related research

Keywords: extended producer responsibility; market structure; product durability; solid waste;

References

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  1. Don Fullerton & Wenbo Wu, 1996. "Policies for Green Design," NBER Working Papers 5594, National Bureau of Economic Research, Inc.
  2. Ausubel, Lawrence M & Deneckere, Raymond J, 1989. "Reputation in Bargaining and Durable Goods Monopoly," Econometrica, Econometric Society, vol. 57(3), pages 511-31, May.
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  4. Rousso, Ada S. & Shah, Shvetank P., 1994. "Packaging Taxes and Recycling Incentives: The German Green Dot Program," National Tax Journal, National Tax Association, vol. 47(3), pages 689-701, September.
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  6. Fullerton, Don & Kinnaman, Thomas C, 1996. "Household Responses to Pricing Garbage by the Bag," American Economic Review, American Economic Association, vol. 86(4), pages 971-84, September.
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  9. Palmer, Karen & Walls, Margaret, 1999. "Extended Product Responsibility: An Economic Assessment of Alternative Policies," Discussion Papers dp-99-12, Resources For the Future.
  10. Margaret Walls & Paul Calcott, 2000. "Can Downstream Waste Disposal Policies Encourage Upstream "Design for Environment"?," American Economic Review, American Economic Association, vol. 90(2), pages 233-237, May.
  11. Fullerton Don & Kinnaman Thomas C., 1995. "Garbage, Recycling, and Illicit Burning or Dumping," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 78-91, July.
  12. Kamien, Morton I & Muller, E, 1976. "Optimal Control with Integral State Equations," Review of Economic Studies, Wiley Blackwell, vol. 43(3), pages 469-73, October.
  13. Abel, Andrew B, 1983. "Market Structure and the Durability of Goods," Review of Economic Studies, Wiley Blackwell, vol. 50(4), pages 625-37, October.
  14. Choe, Chongwoo & Fraser, Iain, 1999. "An Economic Analysis of Household Waste Management," Journal of Environmental Economics and Management, Elsevier, vol. 38(2), pages 234-246, September.
  15. Alan Barrett & John Lawlor, 1997. "Questioning the Waste Hierarchy: The Case of a Region with a Low Population Density," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 40(1), pages 19-36.
  16. Goering, Gregory E & Boyce, John R, 1999. "Emissions Taxation in Durable Goods Oligopoly," Journal of Industrial Economics, Wiley Blackwell, vol. 47(1), pages 125-43, March.
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Citations

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Cited by:
  1. R. Bracke & M. De Clercq, 2005. "Implementing Extended Producer Responsibility in Flemish Waste Policy: Evaluation of the Introduction of the Duty of Acceptance," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/302, Ghent University, Faculty of Economics and Business Administration.
  2. Pangburn, Michael S. & Stavrulaki, Euthemia, 2014. "Take back costs and product durability," European Journal of Operational Research, Elsevier, vol. 238(1), pages 175-184.
  3. Brice ARNAUD, 2014. "Extended Producer Responsibility and Green Marketing: an Application to Packaging," Cahiers du GREThA 2014-04, Groupe de Recherche en Economie Théorique et Appliquée.
  4. repec:hal:cesptp:hal-00446819 is not listed on IDEAS
  5. Fleckinger, Pierre & Glachant, Matthieu, 2010. "The organization of extended producer responsibility in waste policy with product differentiation," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 57-66, January.

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