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Abstract

Using a general equilibrium model where material is first extracted, then used for producing a consumption good, recycled and finally treated to reduce environmental damage, we study efficiency-restoring policies, when one or more of the constituent markets are inactive. The material is modeled as being embodied in the output and forms an important aspect of green product design. If all markets for embodied material per unit output fail and if recycling benefit exceeds environmental damage, the policy instruments needed for green design are a tax on the consumption good supply and a subsidy on the demand for material input.

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File URL: http://www.wiwi.uni-siegen.de/vwl/repec/sie/papers/76-99.pdf
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Bibliographic Info

Paper provided by Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht in its series Volkswirtschaftliche Diskussionsbeiträge with number 76-99.

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Date of creation: 1999
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Handle: RePEc:sie:siegen:76-99

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Postal: Hölderlinstr. 3, D - 57068 Siegen
Phone: ++49 (0)271 740-3139
Fax: ++49 (0)271 740-2590
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Web page: http://www.uni-siegen.de/fb5/vwl/research/diskussionsbeitraege/
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References

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1. Don Fullerton & Wenbo Wu, 1996. "Policies for Green Design," NBER Working Papers 5594, National Bureau of Economic Research, Inc.
   
   • Fullerton, Don & Wu, Wenbo, 1998. "Policies for Green Design," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 131-148, September.
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.
   
   • Don Fullerton & Thomas C. Kinnaman, 1996. "Garbage, Recycling, and Illicit Burning or Dumping," NBER Working Papers 4374, National Bureau of Economic Research, Inc.
3. Miedema, Allen K., 1983. "Fundamental economic comparisons of solid waste policy options," Resources and Energy, Elsevier, vol. 5(1), pages 21-43, March.
4. Palmer, Karen & Sigman, Hilary & Walls, Margaret, 1997. "The Cost of Reducing Municipal Solid Waste," Journal of Environmental Economics and Management, Elsevier, vol. 33(2), pages 128-150, June.
   
   • Palmer, Karen & Walls, Margaret & Sigman, Hilary, 1996. "The Cost of Reducing Municipal Solid Waste," Discussion Papers dp-96-35, Resources For the Future.
5. Rafael Lusky, 1976. "A Model of Recycling and Pollution Control," Canadian Journal of Economics, Canadian Economics Association, vol. 9(1), pages 91-101, February.
6. Anni Huhtala, 1997. "A Post-Consumer Waste Management Model for Determining Optimal Levels of Recycling and Landfilling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 10(3), pages 301-314, October.
7. Hilary A. Sigman, 1995. "A Comparison of Public Policies for Lead Recycling," RAND Journal of Economics, The RAND Corporation, vol. 26(3), pages 452-478, Autumn.
8. Highfill, Jannett & McAsey, Michael, 1997. "Municipal Waste Management: Recycling and Landfill Space Constraints," Journal of Urban Economics, Elsevier, vol. 41(1), pages 118-136, January.
9. 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.
10. 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.
11. Morris Glenn E. & Holthausen Jr. Duncan M., 1994. "The Economics of Household Solid Waste Generation and Disposal," Journal of Environmental Economics and Management, Elsevier, vol. 26(3), pages 215-234, May.
12. Smith, Vernon L, 1972. "Dynamics of Waste Accumulation: Disposal Versus Recycling," The Quarterly Journal of Economics, MIT Press, vol. 86(4), pages 600-616, November.

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Cited by:

1. Bernard, Sophie, 2011. "Remanufacturing," Journal of Environmental Economics and Management, Elsevier, vol. 62(3), pages 337-351.
   
   • Sophie Bernard, 2011. "Remanufacturing," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00594051, HAL.
   • Sophie Bernard, 2011. "Remanufacturing," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00638178, HAL.
   • Sophie Bernard, 2011. "Remanufacturing," Documents de travail du Centre d'Economie de la Sorbonne 11027, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
   • Sophie Bernard, 2010. "Remanufacturing," Working Papers 1003E, University of Ottawa, Department of Economics.
2. Anni Huhtala & Eva Samakovlis, 2002. "Does International Harmonization of Environmental Policy Instruments Make Economic Sense?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 21(3), pages 259-284, March.
3. Rüdiger Pethig, 2003. "The 'materials balance approach' to pollution: its origin, implications and acceptance," Volkswirtschaftliche Diskussionsbeiträge 105-03, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
4. Wagner, Jeffrey, 2011. "Incentivizing sustainable waste management," Ecological Economics, Elsevier, vol. 70(4), pages 585-594, February.
5. repec:ebl:ecbull:v:11:y:2005:i:1:p:1-11 is not listed on IDEAS
6. Fleckinger, Pierre & Glachant, Matthieu, 2010. "The organization of extended producer responsibility in waste policy with product differentiation," Journal of Environmental Economics and Management, Elsevier, vol. 59(1), pages 57-66, January.
   
   • Pierre Fleckinger & Matthieu Glachant, 2010. "The organization of extended producer responsibility in waste policy with product differentiation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00641867, HAL.
   • Pierre Fleckinger & Matthieu Glachant, 2010. "The organization of extended producer responsibility in waste policy with product differentiation," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00446819, HAL.
7. Thomas Eichner & Marco Runkel, 2000. "Efficient and Sustainable Management of Product Durability and Recyclability," Volkswirtschaftliche Diskussionsbeiträge 88-00, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
8. Thomas Eichner & Rüdiger Pethig, 2000. "Corrective Taxation for Curbing Pollution and Promoting Green Product Design and Recycling," CESifo Working Paper Series 350, CESifo Group Munich.
   
   • Thomas Eichner & Rüdiger Pethig, 2003. "Corrective Taxation for Curbing Pollution and Promoting Green Product Design and Recycling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 25(4), pages 477-500, August.
9. Walls, Margaret, 2003. "The Role of Economics in Extended Producer Responsibility: Making Policy Choices and Setting Policy Goals," Discussion Papers dp-03-11, Resources For the Future.
10. Samakovlis, Eva, 2004. "Revaluing the hierarchy of paper recycling," Energy Economics, Elsevier, vol. 26(1), pages 101-122, January.
11. Walls, Margaret & Calcott, Paul, 2002. "Waste, Recycling, and "Design for Environment": Roles for Markets and Policy Instruments," Discussion Papers dp-00-30-rev, Resources For the Future.
    
    • Calcott, Paul & Walls, Margaret, 2005. "Waste, recycling, and "Design for Environment": Roles for markets and policy instruments," Resource and Energy Economics, Elsevier, vol. 27(4), pages 287-305, November.
12. Di Vita, Giuseppe, 2007. "Exhaustible resources and secondary materials: A macroeconomic analysis," Ecological Economics, Elsevier, vol. 63(1), pages 138-148, June.
13. Cogoy, Mario, 2009. "A Model of Eco-Efficiency and Recycling," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 3(21), pages 1-30.
14. Francisco J. André & Emilio Cerdá, 2005. "Gestión de residuos sólidos urbanos: Análisis económico y políticas públicas," Economic Working Papers at Centro de Estudios Andaluces E2005/23, Centro de Estudios Andaluces.
15. Marco Runkel, 2003. "Product Durability and Extended Producer Responsibility in Solid Waste Management," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(2), pages 161-182, February.
16. Jeffrey Wagner & Gregory DeAngelo, 2005. "Characterizing regulation and negligence rule uncertainty in solid waste management," Economics Bulletin, AccessEcon, vol. 11(1), pages 1-11.
17. Thomas Eichner & Rüdiger Pethig, 2000. "Gebuehrenstrategien in einem disaggregierten Modell der Abfallwirtschaft," Volkswirtschaftliche Diskussionsbeiträge 85-00, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.

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