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

Author

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  • Pierre Fleckinger

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Matthieu Glachant

    (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique)

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.

Suggested Citation

  • Pierre Fleckinger & Matthieu Glachant, 2010. "The organization of extended producer responsibility in waste policy with product differentiation," Post-Print hal-00446819, HAL.
    • Handle: RePEc:hal:journl:hal-00446819
    DOI: 10.1016/j.jeem.2009.06.002
    Note: View the original document on HAL open archive server: https://minesparis-psl.hal.science/hal-00446819
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    References listed on IDEAS

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