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An Economic Analysis of the UK Landfill Permits Scheme

Author

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  • Michael Barrow

Abstract

The UK will introduce in 2004 a system of tradable permits for the landfill of municipal waste, in response to an EU directive setting limits on such activity. Tradable permits are becoming an increasingly popular method of dealing with some environmental issues — for example, sulphur dioxide (SO2) emissions in the USA. This paper describes the background to the landfill proposals and provides an analysis of how the permit system might work. Estimates are made of the possible savings in compliance costs of a permit system compared with a conventional ‘command-and-control’ approach. These estimates are subject to a considerable degree of uncertainty, related to factors discussed in the paper.

Suggested Citation

  • Michael Barrow, 2003. "An Economic Analysis of the UK Landfill Permits Scheme," Fiscal Studies, Institute for Fiscal Studies, vol. 24(3), pages 361-381, September.
    • Handle: RePEc:ifs:fistud:v:24:y:2003:i:3:p:361-381
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    Cited by:

    1. Matsueda, Norimichi & Nagase, Yoko, 2012. "An economic analysis of the Packaging waste Recovery Note System in the UK," Resource and Energy Economics, Elsevier, vol. 34(4), pages 669-679.
    2. Patrick Bigger, 2018. "Hybridity, possibility: Degrees of marketization in tradeable permit systems," Environment and Planning A, , vol. 50(3), pages 512-530, May.
    3. Don Fullerton & Andrew Leicester & Stephen Smith, 2008. "Environmental Taxes," NBER Working Papers 14197, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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