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The cost implications of waste reduction: factor demand, competitiveness and policy implications

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Author Info
Wendy Chapple ()
Richard Harris
Catherine Paul

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Abstract

Manufacturing produces both good and “bad” outputs, such as waste, which have negative environmental effects. Economic (e.g., tax) and non-economic (e.g., reputation) incentives encourage firms to reduce waste. However, such practices are costly because decreases in output produced or increases in inputs used may accompany waste reduction. We employ a cost function approach to evaluate patterns of output and waste production and capital, labor, and materials use, for UK manufacturing plants. We find that costs of waste reduction generally imply increasing materials use and capital and labor input saving, but vary by county, region, and industry. Copyright Springer Science+Business Media, LLC 2006

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File URL: http://hdl.handle.net/10.1007/s11123-006-0014-6
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Publisher Info
Article provided by Springer in its journal Journal of Productivity Analysis.

Volume (Year): 26 (2006)
Issue (Month): 3 (December)
Pages: 245-258
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Handle: RePEc:kap:jproda:v:26:y:2006:i:3:p:245-258

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Web page: http://www.springerlink.com/link.asp?id=100296

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Related research
Keywords: Waste reduction costs; Input composition; Corporate social responsibility; Plant level data; D24; M14;

References listed on IDEAS
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  1. Catherine J. Morrison Paul & Donald S. Siegel, 1999. "Scale Economies and Industry Agglomeration Externalities: A Dynamic Cost Function Approach," American Economic Review, American Economic Association, vol. 89(1), pages 272-290, March. [Downloadable!] (restricted)
  2. Catherine J. Morrison Paul & James M. MacDonald, 2003. "Tracing the Effects of Agricultural Commodity Prices and Food Costs," American Journal of Agricultural Economics, American Agricultural Economics Association, vol. 85(3), pages 633-646, 08. [Downloadable!] (restricted)
  3. Chapple, Wendy & Paul, Catherine J. Morrison & Harris, Richard, 2005. "Manufacturing and corporate environmental responsibility: cost implications of voluntary waste minimisation," Structural Change and Economic Dynamics, Elsevier, vol. 16(3), pages 347-373, September. [Downloadable!] (restricted)
  4. Cohen, Jeffrey P. & Paul, Catherine J. Morrison, 2005. "Agglomeration economies and industry location decisions: the impacts of spatial and industrial spillovers," Regional Science and Urban Economics, Elsevier, vol. 35(3), pages 215-237, May. [Downloadable!] (restricted)
  5. Fare, Rolf, et al, 1993. "Derivation of Shadow Prices for Undesirable Outputs: A Distance Function Approach," The Review of Economics and Statistics, MIT Press, vol. 75(2), pages 374-80, May. [Downloadable!] (restricted)
  6. Fare, Rolf, et al, 1989. "Multilateral Productivity Comparisons When Some Outputs Are Undesirable: A Nonparametric Approach," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 90-98, February. [Downloadable!] (restricted)
  7. Harris, Richard I D & Drinkwater, Stephen, 2000. " UK Plant and Machinery Capital Stocks and Plant Closures," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(2), pages 243-65, May. [Downloadable!] (restricted)
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