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Non-Junk Junk Money: Technical Efficiency and Productivity across Junk and Scrap Dealerships


  • Voxi Heinrich S. Amavilah

    (Glendale College & REEPS)


Some forms of environmentalism has generated many positive responses from concerned communities. Sophisticated theories addressing various aspects of environmental policy abound. At the practical level private economic agents following their self-interests confront the challenge of cleaning up the environment through recycling and other waste management programs. Among these agents are what I call here junk and scrap dealerships. But cleaning up will continue only if the marginal costs and benefits are at least equal. How do these firms fare? This simple question is rarely addressed. This paper examines the technical efficiency and productivity utilizing data for 26 junk and scrap wholesale dealerships in Arizona, USA. It finds that junk and scrap dealerships are technically efficient and productive on average. However, both efficiency and productivity vary widely among dealerships. A reasonable conclusion is that junk and scrap dealership contribute to a clean environment, and that may alone be a sufficient basis for continued investment in these labor-owned/manage- firms. This recommendation proceeds cautiously because available data did not support clear understanding of the economic efficiency and cost structures of firms.

Suggested Citation

  • Voxi Heinrich S. Amavilah, 2004. "Non-Junk Junk Money: Technical Efficiency and Productivity across Junk and Scrap Dealerships," Industrial Organization 0412001, University Library of Munich, Germany.
  • Handle: RePEc:wpa:wuwpio:0412001
    Note: Type of Document - wpd; pages: 25. Figures available by email if not clear.

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    References listed on IDEAS

    1. Kenneth Arrow & Partha Dasgupta & Lawrence Goulder & Gretchen Daily & Paul Ehrlich & Geoffrey Heal & Simon Levin & Karl-Göran Mäler & Stephen Schneider & David Starrett & Brian Walker, 2004. "Are We Consuming Too Much?," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 147-172, Summer.
    2. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, June.
    3. Anderson, Curt L., 1987. "The production process: Inputs and wastes," Journal of Environmental Economics and Management, Elsevier, vol. 14(1), pages 1-12, March.
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    More about this item


    junk and scrap: production; sales; technical efficiency and productivity;

    JEL classification:

    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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