Modeling packaging waste policy instruments and recycling in the MENA region

Faten Loukil and Lamia Rouached

Resources, Conservation & Recycling, 2012, vol. 69, issue C, 141-152

Abstract: This paper presents a vertical differentiation model of packaging waste policy instruments and discusses its application in the MENA region, where industrialization has been associated with an increase in packaging waste. We propose to test the effectiveness of eco-tax policy associated with a recycling subsidy (deposit–refund) in reducing the environmental impact of packaging waste. In this model, producers, consumers and the government are responsible for the collection of packaging waste. We evaluate the merit of using a combination of a tax and a subsidy and defines a policy that provides incentives to each actor involved in the process of packaging waste. The model's originality is related to consumer involvement through incentives in packaging waste management. Our analysis suggests that the taxation of producers is necessary but insufficient to ensure the internalization of externalities. The success of instruments such as deposit–refunds in practice depends largely on consumers’ willingness to offset environmental damages due to waste. Therefore, efforts in the MENA region should be oriented to increase consumers’ and producers’ awareness of the environmental risks posed by packaging waste.

Keywords: Packaging waste; Eco-tax; Consumer implication; Deposit–refund system; MENA region; Vertical differentiation model (search for similar items in EconPapers)
JEL-codes: H23 L23 Q53 Q58 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:recore:v:69:y:2012:i:c:p:141-152

DOI: 10.1016/j.resconrec.2012.09.012

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