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Product Design and Efficient Management of Recycling and Waste Treatment

  • Eichner, Thomas
  • Pethig, Rudiger

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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Article provided by Elsevier in its journal Journal of Environmental Economics and Management.

Volume (Year): 41 (2001)
Issue (Month): 1 (January)
Pages: 109-134

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Handle: RePEc:eee:jeeman:v:41:y:2001:i:1:p:109-134
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622870

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  1. Holtermann, Sally, 1976. "Alternative Tax Systems to Correct for Externalities, and the Efficiency of Paying Compensation," Economica, London School of Economics and Political Science, vol. 43(169), pages 1-16, February.
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  9. Rafael Lusky, 1976. "A Model of Recycling and Pollution Control," Canadian Journal of Economics, Canadian Economics Association, vol. 9(1), pages 91-101, February.
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