Policies for green design

Don Fullerton, Wenbo Wu

Research output: Contribution to journalArticlepeer-review

Abstract

A simple general equilibrium model is used to analyze disposal-content fees, subsidies for recyclable designs, unit-pricing of household disposal, deposit-refund systems, and manufacturer 'take-back' requirements. Firms use primary and recycled inputs to produce output that has two 'attributes': packaging per unit output, and recyclability. If households pay the social cost of disposal, then they send the right signals to producers to reduce packaging and to design products that can more easily be recycled. If garbage is collected for free, then socially optimum attributes can still be achieved by a tax on producers' use of packaging and subsidy to recyclable designs.

Original languageEnglish (US)
Pages (from-to)131-148
Number of pages18
JournalJournal of Environmental Economics and Management
Volume36
Issue number2
DOIs
StatePublished - Sep 1998
Externally publishedYes

Keywords

  • Deposit refund
  • Disposal content
  • Green design
  • Green dot
  • Household waste
  • Packaging tax
  • Recycling subsidy
  • Source reduction

ASJC Scopus subject areas

  • Economics and Econometrics
  • Management, Monitoring, Policy and Law

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