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On Second-best Policing Effort against the Illegal Disposal of Recyclable Waste

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  • Mariko Onoda

    () (Doctoral Course Researcher in the Graduate School of Economics, Kwansei Gakuin University)

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    Abstract

    In this paper, we construct a partial equilibrium model of a product that can be manufactured by using a recycled material as well as a virgin natural resource. In particular, we consider the possibility that a household may resort to the illicit disposal of its waste, such as midnight dumping, instead of discarding it properly. Our focus is on conducting a comparative static analysis on the second-best level of the governmentfs policing effort to counter illegal disposal. More specifically, we examine how the government should adjust the effort level in response to changes in the environmental damage cost of illegal disposal and exported waste.

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    File URL: http://192.218.163.163/RePEc/pdf/kgdp56.pdf
    File Function: First version, 2010
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    Bibliographic Info

    Paper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number 56.

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    Length: 21 pages
    Date of creation: May 2010
    Date of revision: May 2010
    Handle: RePEc:kgu:wpaper:56

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    Keywords: illegal waste disposal; recycling; second-best policy;

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    References

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    1. A. Mitchell Polinsky & Steven Shavell, 1999. "The Economic Theory of Public Enforcement of Law," NBER Working Papers 6993, National Bureau of Economic Research, Inc.
    2. Fullerton Don & Kinnaman Thomas C., 1995. "Garbage, Recycling, and Illicit Burning or Dumping," Journal of Environmental Economics and Management, Elsevier, vol. 29(1), pages 78-91, July.
    3. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
    4. 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.
    5. Dinan Terry M., 1993. "Economic Efficiency Effects of Alternative Policies for Reducing Waste Disposal," Journal of Environmental Economics and Management, Elsevier, vol. 25(3), pages 242-256, November.
    6. Higashida, Keisaku & Jinji, Naoto, 2006. "Strategic use of recycled content standards under international duopoly," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 242-257, March.
    7. Heyes, Anthony, 2000. "Implementing Environmental Regulation: Enforcement and Compliance," Journal of Regulatory Economics, Springer, vol. 17(2), pages 107-29, March.
    8. Sullivan, Arthur M., 1987. "Policy options for toxics disposal: Laissez-faire, subsidization, and enforcement," Journal of Environmental Economics and Management, Elsevier, vol. 14(1), pages 58-71, March.
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