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Scrap Prices, Waste, and Recycling Policy

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  • Daniel T. Kaffine

Abstract

This study examines the effect of waste and recycling policy on scrap prices and the importance of scrap price feedbacks as a determinant of policy costs. Price effects and direct and indirect channels of waste reduction are decomposed for deposit/refund, advance disposal fee, and recycling subsidies. Scrap price feedbacks decrease the cost of advance disposal fees, increase the cost of recycling subsidies, and have an ambiguous effect on the cost of deposit/refund. Simulation analysis finds that scrap price feedbacks substantially affect the costs of the policies and alter the ranking of instruments.

Suggested Citation

  • Daniel T. Kaffine, 2014. "Scrap Prices, Waste, and Recycling Policy," Land Economics, University of Wisconsin Press, vol. 90(1), pages 169-180.
  • Handle: RePEc:uwp:landec:v:90:y:2014:i:1:p:169-180
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    References listed on IDEAS

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    1. 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.
    2. Walls, Margaret & Palmer, Karen, 2001. "Upstream Pollution, Downstream Waste Disposal, and the Design of Comprehensive Environmental Policies," Journal of Environmental Economics and Management, Elsevier, vol. 41(1), pages 94-108, January.
    3. Ino, Hiroaki, 2011. "Optimal environmental policy for waste disposal and recycling when firms are not compliant," Journal of Environmental Economics and Management, Elsevier, vol. 62(2), pages 290-308, September.
    4. Margaret Walls & Paul Calcott, 2000. "Can Downstream Waste Disposal Policies Encourage Upstream "Design for Environment"?," American Economic Review, American Economic Association, vol. 90(2), pages 233-237, May.
    5. Copeland, Brian R., 1991. "International trade in waste products in the presence of illegal disposal," Journal of Environmental Economics and Management, Elsevier, vol. 20(2), pages 143-162, March.
    6. 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.
    7. 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.
    8. Acuff, Kaylee & Kaffine, Daniel T., 2013. "Greenhouse gas emissions, waste and recycling policy," Journal of Environmental Economics and Management, Elsevier, vol. 65(1), pages 74-86.
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    Cited by:

    1. repec:ebl:ecbull:eb-16-00167 is not listed on IDEAS
    2. repec:eee:jeeman:v:89:y:2018:i:c:p:168-186 is not listed on IDEAS

    More about this item

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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