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

Hiroshi Kinokuni, Shuichi Ohori and Yasunobu Tomoda
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Yasunobu Tomoda: Kobe City University of Foreign Studies

Environmental & Resource Economics, 2019, vol. 73, issue 1, No 2, 33-50

Abstract: Abstract 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.

Keywords: Solid waste management; Design for environment; Disposal fee; Durability choice; Planned obsolescence (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (5)

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DOI: 10.1007/s10640-018-0248-6

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