Full Description
A recent line of research in environmental and resource economics deals with the analysis of the so-called product-related environmental policy, i.e. the regulation of certain product characteristics which are mainly determined by producers and which influence the impact of consumption goods on the environment. In this line of literature, only little attention has been paid to the role of product durability. The present study aims at filling this gap. It investigates the relationship between (built-in) product durability, production emissions, solid consumption waste and recycling. The main task is to identify inefficiencies in the durability choice of producers and to assess regulatory policies which aim at correcting for such market failure.
Contents
1 Introduction.- 2 Definitions, Assumptions and Basic Model.- 2.1 Modeling Consumer Durables.- 2.2 Basic Oligopoly Model without Pollution.- 3 Regulating Production Emissions of Consumer Durables.- 3.1 The Model of Goering and Boyce (1999).- 3.2 Modified Model with Production Emissions.- 3.3 Practicability of Durable Goods Regulation.- 4 Regulating Solid Waste of Consumer Durables.- 4.1 Durable Goods Markets with Commitment Ability of Producers.- 4.2 Durable Goods Markets without Commitment Ability of Producers.- 4.3 Implications for Practical Waste Policy.- 5 Recycling Policies for Consumer Durables.- 5.1 Durable Goods Markets with Exogenous Product Durability.- 5.2 Durable Goods Markets with Endogenous Product Durability.- 5.3 Summary and Practical Considerations.- 6 Conclusion.- References.- List of Figures.- List of Tables.
