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Author: | Shinkuma, T. |
Title: | Reconsideration of an advance disposal fee policy for end-of-life durable goods |
Journal: | Journal of Environmental Economics and Management
2007 : JAN, VOL. 53:1, p. 110-121 |
Index terms: | CONSUMER DURABLES policy transaction costs |
Language: | eng |
Abstract: | This article investigates the optimal waste disposal policy for durable goods. It is suggested that in an economy without transaction costs the first-best policy is not an ADF policy but a DF policy. Adoption of an ADF policy results in excessive consumption and disposal compared to the social optimum. An ADF policy can be considered as second-best in some situations, since it has some transaction cost advantages over other policies. It can be second-best either if net disposal cost is relatively low or repair cost is relatively high. |
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