Environmental and Resource Policy for Consumer Durables [Paperback]

A recent line of research in environmental and resource economics deals with the analysis of the so-called product-related environmental policy, i.e. the regulation of certain product characteristics which are mainly determined by producers and which influence the impact of consumption goods on the environment. In this line of literature, only little attention has been paid to the role of product durability. The present study aims at filling this gap. It investigates the relationship between (built-in) product durability, production emissions, solid consumption waste and recycling. The main task is to identify inefficiencies in the durability choice of producers and to assess regulatory policies which aim at correcting for such market failure.

A recent line of research in environmental and resource economics deals with the analysis of the so-called product-related environmental policy, i.e. the regulation of certain product characteristics which are mainly determined by producers and which influence the impact of consumption goods on the environment. In this line of literature, only little attention has been paid to the role of product durability. The present study aims at filling this gap. It investigates the relationship between (built-in) product durability, production emissions, solid consumption waste and recycling. The main task is to identify inefficiencies in the durability choice of producers and to assess regulatory policies which aim at correcting for such market failure.

1 Introduction.- 2 Definitions, Assumptions and Basic Model.- 2.1 Modeling Consumer Durables.- 2.1.1 Durable versus Nondurable Goods.- 2.1.2 Decay function of Consumer Durables.- 2.1.3 Vintage Durable Goods.- 2.2 Basic Oligopoly Model without Pollution.- 2.2.1 Model Description and Market Equilibrium.- 2.2.2 Stationary State.- 2.2.3 Comparative Statics of the Long Run Market Equilibrium.- 3 Regulating Production Emissions of Consumer Durables.- 3.1 Thel£p