The Economics of Environmental Law Enforcement: End-of-Life Vehicles
2007 (English)In: European Journal of Law and Economics, ISSN 0929-1261, Vol. 23, no 3, 223-236 p.Article in journal (Refereed) Published
Abandoned End-of-Life Vehicles (ELVs) have been an environmental concern for a long time in a number of countries. This article examines different ways to address the issue by changing the incentive structure for agents. Following (Polinsky A. M., & Shavell, S. (2000). The Economic theory of public enforcement of law. Journal of Economic Literature, 38, 45–76.) a model is used to compare a fine-based system with a deposit-refund system; a combination of the two is then considered. It is shown that when the environmental harm is relatively low and constant, a deposit-refund system is preferred. When cases of high environmental harm are included, the optimal choice would be a combined system.
Place, publisher, year, edition, pages
2007. Vol. 23, no 3, 223-236 p.
End of life vehicles, Extended producer responsibility, Law enforcement, Fine based system, Deposit-refund system, Environmental harm
IdentifiersURN: urn:nbn:se:liu:diva-14263DOI: 10.1007/s10657-007-9017-7OAI: oai:DiVA.org:liu-14263DiVA: diva2:23050