Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/75494
Authors: 
Eichner, Thomas
Pethig, Rüdiger
Year of Publication: 
2000
Series/Report no.: 
CESifo Working Paper 350
Abstract: 
In this paper we consider a competitive economy with flows of materials from extraction via recycling to landfilling which exhibits distortions due to pollution, external landfilling costs and inefficient product design. The allocative impact of tax-subsidy policies aiming at internalizing the distortions are analyzed when the pertinent tax-subsidy rates were successively raised from zero toward their efficiency restoring levels. Promoting recyclability by greening the product design stimulates recycling as expected. But it also increases primary material extraction and - possibly - the total waste flow, and it reduces the recycling ratio.
Subjects: 
Green design
pollution
recycling
material
Document Type: 
Working Paper

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