Economic Instruments and Resource Use in a Recyclable Product Market
AbstractBy constructing a static model of a recyclable product market where the product can be manufactured by using both a recycled material and a harvested natural resource, we examine how different types of economic policy instruments affect resource harvesting activities of individual producers. In particular, we show that an increase in a recycling subsidy for consumers and an increase in a waste disposal fee on consumers can respectively lead to an increase in the resource harvest level. We explore the conditions under which these economic instruments are likely to backfire in terms of natural resource conservation.
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Bibliographic InfoPaper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number 41.
Length: 11 pages
Date of creation: Oct 2008
Date of revision: Oct 2008
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economic instruments; recycling; natural resource.;
Other versions of this item:
- Norimichi Matsueda & Yoko Nagase, 2008. "Economic Instruments and Resource Use in a Recyclable Product Market," Economics Bulletin, AccessEcon, vol. 17(21), pages 1-10.
- Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
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- Fullerton Don & Kinnaman Thomas C., 1995.
"Garbage, Recycling, and Illicit Burning or Dumping,"
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Elsevier, vol. 29(1), pages 78-91, July.
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- Gérard Gaudet & Ngo Van Long, 2003. "Recycling Redux: A Nash-Cournot Approach," The Japanese Economic Review, Japanese Economic Association, vol. 54(4), pages 409-419.
- Martin, Robert E, 1982. "Monopoly Power and the Recycling of Raw Materials," Journal of Industrial Economics, Wiley Blackwell, vol. 30(4), pages 405-19, June.
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