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Inducing e-waste sorting investment under imperfect information

Author

Listed:
  • Prudence Dato

    (Savoie Mont Blanc University-IREGE)

Abstract

In this paper, we apply the theory of incentives to the e-waste market. We want to show how to induce firms in the North to undertake sorting investment to help implement an alternative e-waste market of a joint trade in reusable and non-reusable e-waste. Results show that, if the sorting cost is low, the optimal contract to induce sorting investment and to implement the alternative e-waste market for a joint trade in reusable and non-reusable e-waste is the Baron-Myerson contract. One of the direct implication of the results is that, if the cost is not too high to deter the sorting investment, the firm in the South should give incentives to the firm in the North to invest in sorting so that the alternative e-waste market can easily be implemented.

Suggested Citation

  • Prudence Dato, 2018. "Inducing e-waste sorting investment under imperfect information," Economics Bulletin, AccessEcon, vol. 38(1), pages 629-637.
    • Handle: RePEc:ebl:ecbull:eb-17-00629
    as

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    References listed on IDEAS

    as
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    Keywords

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    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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