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Ex-Post Evaluation of Competition Law Enforcement Effects in the German Packaging Waste Compliance Scheme Market

Author

Listed:
  • Arno Rasek

    (Bundeskartellamt (German Federal Cartel Office))

  • Florian Smuda

    (Bundeskartellamt (German Federal Cartel Office))

Abstract

We provide an ex-post evaluation of the impact of competition law enforcement activities in the German packaging waste compliance scheme market. Until 2003, the non-profit compliance scheme DSD enjoyed a monopoly in the market. Numerous antitrust cases, however, paved the way for competitive market structures. We show that these enforcement activities resulted in a series of market entries since 2004, a corresponding drop in DSD’s market share, increased innovation and substantial efficiencies. Furthermore, we apply a difference-in-differences approach to show that prices decreased by 63% and to estimate the aggregated consumer welfare gains achieved by 2011 at a total of €13 billion. In the given case imposing a non-profit obligation on the monopolist did not substitute for the efficiency-enhancing effects of competition.

Suggested Citation

  • Arno Rasek & Florian Smuda, 2018. "Ex-Post Evaluation of Competition Law Enforcement Effects in the German Packaging Waste Compliance Scheme Market," De Economist, Springer, vol. 166(1), pages 89-109, March.
    • Handle: RePEc:kap:decono:v:166:y:2018:i:1:d:10.1007_s10645-017-9306-7
    DOI: 10.1007/s10645-017-9306-7
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    References listed on IDEAS

    as
    1. Schinkel, Maarten Pieter & Spiegel, Yossi, 2017. "Can collusion promote sustainable consumption and production?," International Journal of Industrial Organization, Elsevier, vol. 53(C), pages 371-398.
    2. Florian Smuda, 2014. "Cartel Overcharges And The Deterrent Effect Of Eu Competition Law," Journal of Competition Law and Economics, Oxford University Press, vol. 10(1), pages 63-86.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Ex post evaluation; Competition law enforcement; Compliance scheme; Packaging waste; Non-profit company; De-monopolization; Consumer welfare effects;
    All these keywords.

    JEL classification:

    • D4 - Microeconomics - - Market Structure, Pricing, and Design
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities

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