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Imperfect Competition in the Recycling Industry

Author

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  • Thomas Eichner

Abstract

This paper studies the market allocation in an economy where material is used for producing a consumption good, then recycled and finally landfilled, and where a recycling firm has market power. The material content constitutes an aspect of green product design and affects the recycling costs. Although the recycling firm's supply of recycling services is inefficiently low, she does not abuse her market power to distort the product design allocation. Different policy schemes are proposed which correct for market failures. One promising candidate is a relative recycling standard combined with a consumption good's tax, a material subsidy and a subsidy on recycling services.

Suggested Citation

  • Thomas Eichner, 2003. "Imperfect Competition in the Recycling Industry," Volkswirtschaftliche Diskussionsbeiträge 108-03, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
  • Handle: RePEc:sie:siegen:108-03
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    File URL: http://www.wiwi.uni-siegen.de/vwl/repec/sie/papers/108-03.pdf
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    More about this item

    Keywords

    imperfect competition; recycling; product design;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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