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The organization of extended producer responsibility in waste policy with product differentiation

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Author Info

  • Pierre Fleckinger

    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

  • Matthieu Glachant

    (CERNA - Centre d'économie industrielle - MINES ParisTech - École nationale supérieure des mines de Paris)

Abstract

The paper analyzes the efficiency of extended producer responsibility (EPR) for waste management. We consider a vertically differentiated duopoly where endogenous market quality affects waste disposal costs. Each producer has to meet a take-back requirement that forces it to collect and treat the waste associated with its products. In line with reality, we assume that the producers either organize themselves individually or cooperate by setting up a producer responsibility organization (PRO). We study the various implementations of EPR. Central to the analysis is the trade-off between collusion through the PRO and market power in the waste industry.

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Bibliographic Info

Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00446819.

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Date of creation: Jan 2010
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Publication status: Published, Journal of Environmental Economics and Management, 2010, 59, 1, 57-66
Handle: RePEc:hal:cesptp:hal-00446819

Note: View the original document on HAL open archive server: http://hal-ensmp.archives-ouvertes.fr/hal-00446819
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Related research

Keywords: Extended producer responsibility; Waste policy; Product differentiation;

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References

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  1. 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.
  2. Don Fullerton & Wenbo Wu, 1996. "Policies for Green Design," NBER Working Papers 5594, National Bureau of Economic Research, Inc.
  3. Takayoshi Shinkuma, 2003. "On the Second-best Policy of Household's Waste Recycling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(1), pages 77-95, January.
  4. Arora, Seema & Gangopadhyay, Shubhashis, 1995. "Toward a theoretical model of voluntary overcompliance," Journal of Economic Behavior & Organization, Elsevier, vol. 28(3), pages 289-309, December.
  5. Chongwoo Choe & Iain Fraser, 1997. "An Economic Analysis of Household Waste Management," Working Papers 1997.11, School of Economics, La Trobe University.
  6. Amacher, Gregory S. & Koskela, Erkki & Ollikainen, Markku, 2004. "Environmental quality competition and eco-labeling," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 284-306, March.
  7. Thomas Bue Bjorner & Lars Garn Hansen & Clifford S. Russell, 2002. "Environmental Labelling and Consumer's Choice - An Empirical Analysis of the Effect of the Nordic Swan," Vanderbilt University Department of Economics Working Papers 0203, Vanderbilt University Department of Economics.
  8. Thomas Eichner & Rüdiger Pethig, 1999. "Product Design and efficient Management of Recycling and Waste Treatment," Volkswirtschaftliche Diskussionsbeiträge 76-99, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
  9. Rob F.T. Aalbers & Herman R.J. Vollebergh, 2005. "An Economic Analysis of Mixing Wastes," Tinbergen Institute Discussion Papers 05-094/3, Tinbergen Institute.
  10. Palmer, Karen & Walls, Margaret, 1997. "Optimal policies for solid waste disposal Taxes, subsidies, and standards," Journal of Public Economics, Elsevier, vol. 65(2), pages 193-205, August.
  11. C. Lombardini-Riipinen, 2005. "Optimal Tax Policy under Environmental Quality Competition," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 32(3), pages 317-336, November.
  12. Marco Runkel, 2003. "Product Durability and Extended Producer Responsibility in Solid Waste Management," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(2), pages 161-182, February.
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Cited by:
  1. Norimichi Matsueda & Yoko Nagase, 2011. "An Economic Analysis of the Packaging Waste Recovery Note System in the UK," Discussion Paper Series 72, School of Economics, Kwansei Gakuin University, revised Jun 2011.
  2. Valentina Iafolla & Massimiliano Mazzanti & Francesco Nicolli, 2010. "Are You SURE You Want to Waste Policy Chances? Waste Generation, Landfill Diversion and Environmental Policy Effectiveness in the EU15," Working Papers 2010.77, Fondazione Eni Enrico Mattei.
  3. Valentina Iafolla & Massimiliano Mazzanti & Francesco Nicolli, 2010. "Rifiuti generati, rifiuti in discarica ed efficacia delle politiche ambientali in Europa," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(2), pages 103-135.

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