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Efficient and Sustainable Management of Product Durability and Recyclability

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  • Thomas Eichner
  • Marco Runkel

Abstract

In a dynamic general equilibrium model we explictly consider the relationship between the product attributes 'durability' and 'recyclability'. Both efficiency and sustainability aspects are taken into account. It turns out (a) that durability may be inefficient even in a perfectly competitive economy in which environmental externalities are absent, (b) that in case where markets for product design are absent the efficiency restoring tax-subsidy schemes may significantly differ from the sustainability restoring tax-subsidy schemes and (c) that changing the property rights for consumption goods and consumption residuals is a promising policy option to overcome market failure.

Suggested Citation

  • Thomas Eichner & Marco Runkel, 2000. "Efficient and Sustainable Management of Product Durability and Recyclability," Volkswirtschaftliche Diskussionsbeiträge 88-00, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
    • Handle: RePEc:sie:siegen:88-00
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    File URL: http://www.wiwi.uni-siegen.de/vwl/repec/sie/papers/88-00.pdf
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    References listed on IDEAS

    as
    1. Margaret Walls & Paul Calcott, 2000. "Can Downstream Waste Disposal Policies Encourage Upstream "Design for Environment"?," American Economic Review, American Economic Association, vol. 90(2), pages 233-237, May.
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    3. Goering, Gregory E., 1992. "Oligopolies and product durability," International Journal of Industrial Organization, Elsevier, vol. 10(1), pages 55-63, March.
    4. Thomas Eichner & Rüdiger Pethig, 2001. "Recycling, Producer Responsibility and Centralized Waste Management," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 57(3), pages 333-360, May.
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    7. Thomas Eichner & Rüdiger Pethig, 1999. "Product design and markets for recycling, waste treatment and disposal," Volkswirtschaftliche Diskussionsbeiträge 73-99, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
    8. Eichner, Thomas & Pethig, Rudiger, 2001. "Product Design and Efficient Management of Recycling and Waste Treatment," Journal of Environmental Economics and Management, Elsevier, vol. 41(1), pages 109-134, January.
    9. Marco Runkel, 1999. "Product Durability, Solid Waste Management and Market Structure," Volkswirtschaftliche Diskussionsbeiträge 78-99, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
    10. Gregory E. Goering & John R. Boyce, 1999. "Emissions Taxation in Durable Goods Oligopoly," Journal of Industrial Economics, Wiley Blackwell, vol. 47(1), pages 125-143, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy

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