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| Tekijä: | Shinkuma, T. |
| Otsikko: | On the Second-Best Policy of Household's Waste Recycling |
| Lehti: | Environmental and Resource Economics
2003 : JAN, VOL. 24:1, p. 77-95 |
| Asiasana: | RECYCLING WASTE MATERIALS POLICY TRANSACTION COSTS ECONOMICS |
| Kieli: | eng |
| Tiivistelmä: | This study analyzes the second-best household's waste recycling policy. If the authors assume the first-best economy with no illegal disposal or transaction costs, then unit pricing, an advance disposal fee and a recycling subsidy are required in order to achieve the social optimum such that both the sum of unit pricing and an advance disposal fee and the sum of unit pricing and a recycling subsidy are equal to the marginal disposal cost. Furthermore, the first-best outcome can also be obtained by a producer take-back requirement system. In the real economy, however, various factors prevent the first-best optimal outcome. In this study the authors consider two factors, one being the transaction cost associated with a recycling subsidy (or refund) and the other being illegal disposal by the consumer. |
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