Published May 15, 2019 | Version v1
Journal article

Optimal Waste Disposal Fees When Product Durability is Endogenous: Accounting for Planned Obsolescence

  • 1. Ritsumeikan University, Faculty of Economics (Japan)
  • 2. Kansai University, Faculty of Informatics (Japan)
  • 3. Kobe City University of Foreign Studies (Japan)

Description

Considering the Coase conjecture (J Law Econ 15:143–149, 1972), we explore the optimal disposal fee of solid waste through the choice of product durability by a producer. We find that introducing a disposal fee curbs planned obsolescence and increases product durability. This increased durability decreases the social cost of waste and increases the service flow from the durable product. Therefore, the optimal disposal fee is higher than the Pigouvian level in the closed-loop.

Additional details

Identifiers

Publishing Information

Journal Title
Environmental and Resource Economics (Dordrecht)
Journal Volume
73
Journal Issue
1
Journal Page Range
p. 33-50
ISSN
0924-6460
CODEN
ERECEP

INIS

Country of Publication
Netherlands
Country of Input or Organization
International Atomic Energy Agency (IAEA)
INIS RN
54093698
Subject category
S54: ENVIRONMENTAL SCIENCES;
Descriptors DEI
ENVIRONMENT; SOLID WASTES; WASTE DISPOSAL; WEAR RESISTANCE
Descriptors DEC
MANAGEMENT; MECHANICAL PROPERTIES; WASTE MANAGEMENT; WASTES

Optional Information

Copyright
Copyright (c) 2018 Springer Science+Business Media B.V., part of Springer Nature