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EPR Reference Database

Publication type: Academic Journal Article

Product durability and extended producer responsibility in solid waste management

Abstract/summary

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.

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Author(s)
Marco Runkel
Journal
Environmental & Resource Economics
Year
2003
Volume and issue
24, 2
Pages
161-182
DOI
10.1023/A:1022800206337
URL
http://dx.doi.org/10.1023/A:1022800206337
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