Waste from production: an analysis at the firm level

Santosh Kumar Sahu and Prantik Bagchi
Additional contact information
Prantik Bagchi: Indian Institute of Technology Madras

Quality & Quantity: International Journal of Methodology, 2023, vol. 57, issue 3, No 32, 2656 pages

Abstract: Abstract Waste management is an essential tool for policymakers. We derive an efficient production function using a dual cost approach related to waste from the output. Since producers do not bear the cost of waste disposal, the demand for virgin material increases in the production process. Therefore, preserving exhaustible resources by imposing a tax on virgin materials and waste disposals is essential. This study compares the effect of tax on waste and the demand for virgin material. Our results suggest that (a) taxing waste or virgin material will induce recycling only for the polluting firms; (b) a tax on virgin material is highly effective for the polluting firms; however, the output will reduce; (c) a higher tax may lead cross-border trade of waste generated. We also focus on different markets, such as perfectly competitive markets and imperfectly competitive markets. We conclude as the number of firms increases under Cournot’s oligopolistic setup, the effect on the profitability becomes negligible. The findings of this study have greater implications for the environment and climate policies.

Keywords: Waste; Production; Firm level (search for similar items in EconPapers)
JEL-codes: L72 Q3 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s11135-022-01482-x Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:qualqt:v:57:y:2023:i:3:d:10.1007_s11135-022-01482-x

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/11135

DOI: 10.1007/s11135-022-01482-x

Access Statistics for this article

Quality & Quantity: International Journal of Methodology is currently edited by Vittorio Capecchi

More articles in Quality & Quantity: International Journal of Methodology from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().