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Product Durability and Extended Producer Responsibility in Solid Waste Management

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  • Marco Runkel

Abstract

Using a vintage durable good model, this paper investigates how extended producer responsibility (EPR) in waste management influences product durability and welfare. Four EPR instruments are discussed and compared with the benchmark in which producers do not receive price signals for waste disposal. In each case, EPR induces durability to increase. Under perfect competition the welfare change caused by EPR is unambiguously positive and one EPR instrument is even capable of implementing the first-best welfare optimum. In contrast, under imperfect competition EPR may lead to a welfare reduction. The analysis also compares EPR to non-EPR measures. Copyright Kluwer Academic Publishers 2003

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  • Marco Runkel, 2003. "Product Durability and Extended Producer Responsibility in Solid Waste Management," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(2), pages 161-182, February.
    • Handle: RePEc:kap:enreec:v:24:y:2003:i:2:p:161-182
    DOI: 10.1023/A:1022800206337
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    Cited by:

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    3. Egger, Peter H. & Keuschnigg, Christian, 2024. "Resource dependence, recycling, and trade," Journal of Environmental Economics and Management, Elsevier, vol. 128(C).
    4. Sun, Xi & Neuhoff, Karsten, 2025. "Nobody decides for all — Modeling incentives and policies for closing the material loop," Ecological Economics, Elsevier, vol. 227(C).
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    6. Sophie Bernard, 2019. "Multidimensional Green Product Design," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 72(4), pages 1183-1202, April.
    7. M. Dubois & J. Eyckmans, 2015. "Efficient Waste Management Policies and Strategic Behavior with Open Borders," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(4), pages 907-923, December.
    8. Asuncion Arner Guerre, 2022. "The Extended Producer Responsibility for Waste Oils," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 210-217, March.
    9. Pangburn, Michael S. & Stavrulaki, Euthemia, 2014. "Take back costs and product durability," European Journal of Operational Research, Elsevier, vol. 238(1), pages 175-184.
    10. Yusuke Kuwayama & Nicholas Brozović, 2017. "Optimal Management of Environmental Externalities with Time Lags and Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(3), pages 473-499, November.
    11. Faten Loukil & Lamia Rouached, 2014. "Implementing Extended Producer Responsibility: Comparative Analysis of Packaging Waste Management," Working Papers 879, Economic Research Forum, revised Nov 2014.
    12. Massarutto, Antonio, 2014. "The long and winding road to resource efficiency – An interdisciplinary perspective on extended producer responsibility," Resources, Conservation & Recycling, Elsevier, vol. 85(C), pages 11-21.
    13. 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.
    14. Aarnio, Teija & Hämäläinen, Anne, 2008. "Challenges in packaging waste management in the fast food industry," Resources, Conservation & Recycling, Elsevier, vol. 52(4), pages 612-621.
    15. Arner Güerre, Asunción, 2018. "La eficiencia de la responsabilidad ampliada del productor en la gestión de aceites usados con diferenciación del producto/The Efficiency of Extended Producer Responsibility in Waste Oil Management wi," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 36, pages 789-810, Septiembr.
    16. Hiroshi Kinokuni & Shuichi Ohori & Yasunobu Tomoda, 2019. "Optimal Waste Disposal Fees When Product Durability is Endogenous: Accounting for Planned Obsolescence," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 73(1), pages 33-50, May.
    17. Jayashree Mahajan & Asoo J Vakharia, 2016. "Waste Management: A Reverse Supply Chain Perspective," Vikalpa: The Journal for Decision Makers, , vol. 41(3), pages 197-208, September.
    18. Irene Pollach & Arno Scharl & Albert Weichselbraun, 2009. "Web content mining for comparing corporate and third‐party online reporting: a case study on solid waste management," Business Strategy and the Environment, Wiley Blackwell, vol. 18(3), pages 137-148, March.
    19. Xi Sun & Karsten Neuhoff, 2024. "Realizing the Value of Recycling – Assessing the Elements of a Policy Package," Discussion Papers of DIW Berlin 2069, DIW Berlin, German Institute for Economic Research.
    20. Bernard, Sophie, 2015. "North–south trade in reusable goods: Green design meets illegal shipments of waste," Journal of Environmental Economics and Management, Elsevier, vol. 69(C), pages 22-35.
    21. Brice ARNAUD, 2014. "Extended Producer Responsibility and Green Marketing: an Application to Packaging," Cahiers du GREThA (2007-2019) 2014-04, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    22. R. Bracke & M. De Clercq, 2005. "Implementing Extended Producer Responsibility in Flemish Waste Policy: Evaluation of the Introduction of the Duty of Acceptance," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/302, Ghent University, Faculty of Economics and Business Administration.
    23. Brice Arnaud, 2017. "Extended Producer Responsibility and Green Marketing: An Application to Packaging," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 67(2), pages 285-296, June.

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