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Regulatory Failure via Market Evolution: The Case of UK Packaging Recycling

Author

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  • Richard O'Doherty

    (School of Economics, University of the West of England, Bristol BS16 1QY, England)

  • Ian Bailey

    (School of Geography and Geology, University of Plymouth, Plymouth, Devon PL4 8AA, England)

  • Alan Collins

    (Department of Economics, University of Portsmouth, Milton Site, Locksway Road, Southsea, Hants PO4 8JF, England)

Abstract

The introduction of new market-based instruments (MBIs), such as eco-taxes and tradable permits, has prompted major changes in the implementation of environmental policy in the European Union. However, rather than wholeheartedly embracing the logic of environmental economics, governments have preferred to introduce MBIs alongside more traditional command-and-control measures, ostensibly to guarantee that policy objectives are met. Where such regimes of governance have underperformed, this raises the question as to whether difficulties are caused principally by flawed theory or regulatory failure, namely errors in policy design that distort MBIs from intended changes in market behaviour. Analysis of a tradable-permit scheme in Packaging Recovery Notes introduced to implement the UK Packaging Regulations reveals that, in this case, the difficulties experienced with an MBI were, in fact, traceable to regulatory failure. Different types of regulatory failure are identified and discussed.

Suggested Citation

  • Richard O'Doherty & Ian Bailey & Alan Collins, 2003. "Regulatory Failure via Market Evolution: The Case of UK Packaging Recycling," Environment and Planning C, , vol. 21(4), pages 579-595, August.
  • Handle: RePEc:sae:envirc:v:21:y:2003:i:4:p:579-595
    DOI: 10.1068/c0036j
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    References listed on IDEAS

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    1. Henk Folmer & H. L. Gabel (ed.), 2000. "Principles of Environmental and Resource Economics," Books, Edward Elgar Publishing, number 1605.
    2. Paul L. Joskow, 1989. "Regulatory Failure, Regulatory Reform, and Structural Change in the Electrical Power Industry," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1989 Micr), pages 125-208.
    3. Ronald G. Cummings & Michael McKee & Laura Taylor, 2001. "To whisper in the ears of princes: laboratory economic experiments and environmental policy," Chapters, in: Henk Folmer & H. Landis Gabel & Shelby Gerking & Adam Rose (ed.), Frontiers of Environmental Economics, chapter 5, Edward Elgar Publishing.
    4. Henk Folmer & H. Landis Gabel & Shelby Gerking & Adam Rose (ed.), 2001. "Frontiers of Environmental Economics," Books, Edward Elgar Publishing, number 1929.
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    Cited by:

    1. Söderholm, Patrik & Tilton, John E., 2012. "Material efficiency: An economic perspective," Resources, Conservation & Recycling, Elsevier, vol. 61(C), pages 75-82.
    2. Francesco Nicolli & Nick Johnstone & Patrik Söderholm, 2012. "Resolving failures in recycling markets: the role of technological innovation," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 14(3), pages 261-288, July.
    3. Patrik Söderholm & Tomas Ekvall, 2020. "Metal markets and recycling policies: impacts and challenges," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 33(1), pages 257-272, July.

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