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Corrective Taxation for Curbing Pollution and Promoting Green Product Design and Recycling

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  • Thomas Eichner

    ()

  • Rüdiger Pethig

    ()

Abstract

In this paper we consider a competitive economy with flows of materials from extraction via recycling to landfilling which exhibits distortions due to pollution, external landfilling costs and inefficient product design. The allocative impact of tax-subsidy policies aiming at internalizing the distortions are analyzed when the pertinent tax-subsidy rates were successively raised from zero toward their efficiency restoring levels. Promoting recyclability by greening the product design stimulates recycling as expected. But it also increases primary material extraction and – possibly – the total waste flow, and it reduces the recycling ratio. Copyright Kluwer Academic Publishers 2003

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File URL: http://hdl.handle.net/10.1023/A:1025057712785
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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): 25 (2003)
Issue (Month): 4 (August)
Pages: 477-500

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Handle: RePEc:kap:enreec:v:25:y:2003:i:4:p:477-500

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

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Keywords: green design; material; pollution; recycling;

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References

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  1. Chongwoo Choe & Iain Fraser, 1997. "An Economic Analysis of Household Waste Management," Working Papers 1997.11, School of Economics, La Trobe University.
  2. Eichner, Thomas & Pethig, Rudiger, 2001. "Product Design and Efficient Management of Recycling and Waste Treatment," Journal of Environmental Economics and Management, Elsevier, vol. 41(1), pages 109-134, January.
  3. Smith, Vernon L, 1972. "Dynamics of Waste Accumulation: Disposal Versus Recycling," The Quarterly Journal of Economics, MIT Press, vol. 86(4), pages 600-616, November.
  4. Don Fullerton & Ann Wolverton, 2000. "Two Generalizations of a Deposit-Refund System," NBER Working Papers 7505, National Bureau of Economic Research, Inc.
  5. 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.
  6. Don Fullerton & Wenbo Wu, 1996. "Policies for Green Design," NBER Working Papers 5594, National Bureau of Economic Research, Inc.
  7. Schulze, William D., 1974. "The optimal use of non-renewable resources: The theory of extraction," Journal of Environmental Economics and Management, Elsevier, vol. 1(1), pages 53-73, May.
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Cited by:
  1. Higashida, Keisaku & Jinji, Naoto, 2005. "Strategic Use of Recycled Content Standards under International Duopoly," Discussion Papers 2004-12, Graduate School of Economics, Hitotsubashi University.
  2. Rob F.T. Aalbers & Herman R.J. Vollebergh, 2005. "An Economic Analysis of Mixing Wastes," Tinbergen Institute Discussion Papers 05-094/3, Tinbergen Institute.
  3. Rob Aalbers & Herman Vollebergh, 2008. "An economic analysis of mixing wastes," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 39(3), pages 311-330, March.
  4. Francisco J. André & Emilio Cerdá, 2005. "Gestión de residuos sólidos urbanos: Análisis económico y políticas públicas," Economic Working Papers at Centro de Estudios Andaluces E2005/23, Centro de Estudios Andaluces.

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