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Does the financing of extended producer responsibility influence economic growth?
Linköping University, Department of Management and Engineering, Economics . Linköping University, Faculty of Arts and Sciences.
2009 (English)In: Journal of Cleaner Production, ISSN 0959-6526, Vol. 17, no 2, 297-302 p.Article in journal (Refereed) Published
Abstract [en]

The question of how the financing of Extended Producer Responsibility (EPR) affects the overall performance of the economy is important as products covered by EPR comprise an increasing part of the economy. in this paper, an Overlapping Generations (OLG) model with endogenous growth is applied to the case and a comparison between two financing schemes, an insurance solution and a pay-as-you-go (PAYG) solution, is made with respect to the effect on the level of production, the growth rate, the impact of a productivity shock and the risk exposure. It is found that in the case of a funded solution, both the level of production and the growth rate in production is higher than in the PAYG case, and the short-run effect of productivity shock is bigger. The policy indication is clear: EPR should be attached to a financing scheme if welfare is to be maximised.

Place, publisher, year, edition, pages
2009. Vol. 17, no 2, 297-302 p.
Keyword [en]
Extended producer responsibility; Financing; Overlapping generations model; Pay-as-you-go system; Public policy
National Category
Social Sciences
Identifiers
URN: urn:nbn:se:liu:diva-16855DOI: 10.1016/j.jclepro.2008.07.002OAI: oai:DiVA.org:liu-16855DiVA: diva2:174398
Available from: 2009-02-21 Created: 2009-02-20 Last updated: 2009-04-14
In thesis
1. Return to Sender: Essays on Extended producer Responsibility
Open this publication in new window or tab >>Return to Sender: Essays on Extended producer Responsibility
2006 (English)Doctoral thesis, comprehensive summary (Other academic)
Alternative title[sv]
Åter till avsändaren : Essäer om förlängt producentansvar
Abstract [en]

The purpose of this thesis to increase the understanding of how Extended Producer Responsibility (EPR) affects the economy. EPR is a principle stating that producers should be responsible for the environmental impact of their products throughout the life cycle. In four out of five essays, scrapping of end-of-life vehicles in Sweden is used as an example.

In Essay I the interdependency of the consumers’ and the producers’ responsibilities are stressed. It is concluded that the financial solution should be separated from the producer in order to ensure that future liabilities can be met.

The main contribution of Essay II is that an increased premium will result in an increased number of returned vehicles. In Essay III it is shown that when the environmental harm is constant and relatively low, a deposit-refund system is preferred to an unfounded system. In cases where high environmental harm occurs the optimal choice would be a system combining both deposits and fines.

Essay IV concludes that a funded system would have been a better way to finance the premium than an unfunded system in terms of higher rate of return. In Essay V the analysis is no longer limited to ELVs, and a model with endogenous growth is applied to the case where all the products in the economy are covered by EPR. It is found that both the growth and the level of output is favoured by the choice of a funded scheme.

Abstract [sv]

Syftet med avhandlingen är att studera hur ekonomin påverkas av utökat producentansvar. Utökat producentansvar är ett sätt att internalisera miljökostnader i marknadspriset. Producentansvaret för bilar, så som det implementerats i den svenska lagstiftningen, har lagts till den tidigare lagstiftningen utan några större anpassningar. Effekterna av detta har inte tidigare utretts. Först analyseras dess konsekvenser i en översiktlig artikel. Därefter följer en ekonometrisk artikel vars syfte är att testa effekten av den nuvarande bilskrotningspremien. Det visade sig att en höjd premie ökar antalet återlämnade fordon.

Sedan används en rättsekonomisk ansats för att förutsättningslöst, dvs. utan att ta den befintliga lagstiftning som utgångspunkt, analysera nedskräpningsproblematiken. Möjligheten att använda ett pantsystem jämförs med att använda böter för att styra individernas beteende. Det visade sig att om miljöpåverkan är relativt liten så är ett pantsystem att föredra, men om även fall med stor miljöpåverkan inkluderas skulle det optimala vara att använda både böter och pant.

Därefter jämförs två alternativa sätt att finansiera premien, ett fonderat system jämförs med ett ”Pay-As–You-Go” system. Resultatet indikerar att ett fonderat system hade varit att föredra under den studerade perioden. Slutligen studeras effekterna av producenternas framtida åtaganden till följd av det utökade producentansvaret med hjälp av modell med endogen tillväxt. Det visade sig att både tillväxttakten och nivån på produktionen skulle ha gynnats av ett fonderat system.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2006. 15 + essays 1-5 p.
Series
Linköping Studies in Arts and Science, ISSN 0282-9800 ; 368Linköping Studies in Management and Economics. Dissertations, ISSN 0347-8920 ; 70
Keyword
Extended Procedur Responsibility, End-of-Life vehicles, Economic incentives, Growth, Producentansvar, Pantsystem, Tillväxt
National Category
Economics
Identifiers
urn:nbn:se:liu:diva-8218 (URN)91-85643-99-8 (ISBN)
Public defence
2006-10-06, Planck, Hus E, Campus Valla, Linköpings universitet, Linköping, 10:30 (English)
Opponent
Supervisors
Available from: 2007-01-31 Created: 2007-01-31 Last updated: 2014-09-05Bibliographically approved

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