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Extended Producer Responsibility and Green Marketing: an Application to Packaging

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  • Brice ARNAUD

Abstract

This paper analyses the efficiency of Extended Producer Responsibility (EPR) to manage household packaging wastes. We use a Mussa-Rosen type model of vertical product differentiation: two firms produce a homogeneous good and use packaging to create a subjective vertical differentiation. We verify that an ERP characterised by a Pigouvian tax – producers bear the social cost of waste management – is not an optimal policy. We show then that an optimal policy is an adjusted Pigouvian tax, accounting for waste management costs.

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  • Brice ARNAUD, 2014. "Extended Producer Responsibility and Green Marketing: an Application to Packaging," Cahiers du GREThA (2007-2019) 2014-04, Groupe de Recherche en Economie Théorique et Appliquée (GREThA).
    • Handle: RePEc:grt:wpegrt:2014-04
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    File URL: http://cahiersdugretha.u-bordeaux.fr/2014/2014-04.pdf
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    References listed on IDEAS

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    5. Bansal, Sangeeta, 2008. "Choice and design of regulatory instruments in the presence of green consumers," Resource and Energy Economics, Elsevier, vol. 30(3), pages 345-368, August.
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    Keywords

    duopoly; extended producer responsibility; packaging; pigouvian tax; vertical differentiation.;
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