Extended Producer Responsibility and Green Marketing: an Application to Packaging

Brice Arnaud

Cahiers du GREThA (2007-2019) from Groupe de Recherche en Economie Théorique et Appliquée (GREThA)

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.

Keywords: duopoly; extended producer responsibility; packaging; pigouvian tax; vertical differentiation. (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-env, nep-mkt and nep-sog
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Persistent link: https://EconPapers.repec.org/RePEc:grt:wpegrt:2014-04

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