A Comparison of Public Policies for Lead Recycling

Hilary Sigman

RAND Journal of Economics, 1995, vol. 26, issue 3, 452-478

Abstract: Policies that encourage recycling may be used to reduce environmental costs from waste disposal because direct restrictions on disposal are difficult to enforce. Four recycling policies have been advanced: (i) taxes on the use of virgin materials, (ii) deposit/refund programs, (iii) subsidies to recycled material production, and (iv) recycled content standards. In this article, I analyze the structure of these policies and their cost-effectiveness in achieving reductions in disposal. I then examine the policies in the empirical context of the recycling of lead from automobile batteries. In order to calculate the effects of recycling programs, I estimate the elasticities for primary and secondary lead supply and demand. My results suggest that price-based policy mechanisms can be successful in increasing lead recovery and that the difference in efficiency between the four approaches is similar.

Date: 1995
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