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Economic Instruments and Resource Use in a Recyclable Product Market

Author

Listed:
  • Norimichi Matsueda

    (Kwansei Gakuin University)

  • Yoko Nagase

    (Portland State University)

Abstract

By constructing a static model of a recyclable product market where the product can be manufactured by using both a recycled material and a harvested natural resource, we examine how different types of economic policy instruments affect resource harvesting activities of individual producers. In particular, we show that an increase in a recycling subsidy for consumers and an increase in a waste disposal fee on consumers can respectively lead to an increase in the resource harvest level. We explore the conditions under which these economic instruments are likely to backfire in terms of natural resource conservation.

Suggested Citation

  • Norimichi Matsueda & Yoko Nagase, 2008. "Economic Instruments and Resource Use in a Recyclable Product Market," Economics Bulletin, AccessEcon, vol. 17(21), pages 1-10.
    • Handle: RePEc:ebl:ecbull:eb-08q20008
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    References listed on IDEAS

    as
    1. Don Fullerton & Thomas C. Kinnaman, 2002. "Garbage, Recycling, and Illicit Burning or Dumping," Chapters, in: Don Fullerton & Thomas C. Kinnaman (ed.), The Economics of Household Garbage and Recycling Behavior, chapter 2, pages 49-62, Edward Elgar Publishing.
    2. Gérard Gaudet & Ngo Van Long, 2003. "Recycling Redux: A Nash–Cournot Approach," The Japanese Economic Review, Japanese Economic Association, vol. 54(4), pages 409-419, December.
    3. Palmer, Karen & Walls, Margaret, 1997. "Optimal policies for solid waste disposal Taxes, subsidies, and standards," Journal of Public Economics, Elsevier, vol. 65(2), pages 193-205, August.
    4. Takayoshi Shinkuma, 2003. "On the Second-best Policy of Household's Waste Recycling," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 24(1), pages 77-95, January.
    5. Martin, Robert E, 1982. "Monopoly Power and the Recycling of Raw Materials," Journal of Industrial Economics, Wiley Blackwell, vol. 30(4), pages 405-419, June.
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    More about this item

    JEL classification:

    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation

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