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Economic Instruments and Resource Use in a Recyclable Product Market

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Author Info

  • Norimichi Matsueda

    ()
    (Kwansei Gakuin University)

  • Yoko Nagase

    (Portland State University)

Abstract

By 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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File URL: http://192.218.163.163/RePEc/pdf/kgdp41.pdf
File Function: First version, 2008
Download Restriction: no

Bibliographic Info

Paper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number 41.

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Length: 11 pages
Date of creation: Oct 2008
Date of revision: Oct 2008
Handle: RePEc:kgu:wpaper:41

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Keywords: economic instruments; recycling; natural resource.;

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