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The organization of extended producer responsibility in waste policy with product differentiation

  • Pierre Fleckinger

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS)

  • Matthieu Glachant

    ()

    (CERNA - Centre d'économie industrielle - MINES ParisTech - École nationale supérieure des mines de Paris)

The paper analyzes the efficiency of extended producer responsibility (EPR) for waste management. We consider a vertically differentiated duopoly where endogenous market quality affects waste disposal costs. Each producer has to meet a take-back requirement that forces it to collect and treat the waste associated with its products. In line with reality, we assume that the producers either organize themselves individually or cooperate by setting up a producer responsibility organization (PRO). We study the various implementations of EPR. Central to the analysis is the trade-off between collusion through the PRO and market power in the waste industry.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number hal-00446819.

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Date of creation: Jan 2010
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Handle: RePEc:hal:cesptp:hal-00446819
Note: View the original document on HAL open archive server: https://hal-mines-paristech.archives-ouvertes.fr/hal-00446819
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  1. C. Lombardini-Riipinen, 2005. "Optimal Tax Policy under Environmental Quality Competition," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 32(3), pages 317-336, November.
  2. Rob Aalbers & Herman Vollebergh, 2008. "An economic analysis of mixing wastes," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 39(3), pages 311-330, March.
  3. Chongwoo Choe & Iain Fraser, 1997. "An Economic Analysis of Household Waste Management," Working Papers 1997.11, School of Economics, La Trobe University.
  4. Eichner, Thomas & Pethig, Rudiger, 2001. "Product Design and Efficient Management of Recycling and Waste Treatment," Journal of Environmental Economics and Management, Elsevier, vol. 41(1), pages 109-134, January.
  5. Takayoshi Shinkuma, 2003. "On the Second-best Policy of Household's Waste Recycling," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(1), pages 77-95, January.
  6. Fullerton, Don & Wu, Wenbo, 1998. "Policies for Green Design," Journal of Environmental Economics and Management, Elsevier, vol. 36(2), pages 131-148, September.
  7. Bjorner, Thomas Bue & Hansen, L.G.Lars Garn & Russell, Clifford S., 2004. "Environmental labeling and consumers' choice--an empirical analysis of the effect of the Nordic Swan," Journal of Environmental Economics and Management, Elsevier, vol. 47(3), pages 411-434, May.
  8. 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.
  9. Amacher, Gregory S. & Koskela, Erkki & Ollikainen, Markku, 2004. "Environmental quality competition and eco-labeling," Journal of Environmental Economics and Management, Elsevier, vol. 47(2), pages 284-306, March.
  10. 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.
  11. Arora, Seema & Gangopadhyay, Shubhashis, 1995. "Toward a theoretical model of voluntary overcompliance," Journal of Economic Behavior & Organization, Elsevier, vol. 28(3), pages 289-309, December.
  12. 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.
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