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Return to Sender: Essays on Extended producer Responsibility
Linköping University, Department of Management and Engineering, Economics. Linköping University, Faculty of Arts and Sciences.
2006 (English)Doctoral thesis, comprehensive summary (Other academic)Alternative title
Åter till avsändaren : Essäer om förlängt producentansvar (Swedish)
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 [en]
Extended Procedur Responsibility, End-of-Life vehicles, Economic incentives, Growth
Keyword [sv]
Producentansvar, Pantsystem, Tillväxt
National Category
Economics
Identifiers
URN: urn:nbn:se:liu:diva-8218ISBN: 91-85643-99-8 (print)OAI: oai:DiVA.org:liu-8218DiVA: diva2:23053
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
List of papers
1. Implementing extended producer responsibility: the case of Sweden’s car scrapping scheme
Open this publication in new window or tab >>Implementing extended producer responsibility: the case of Sweden’s car scrapping scheme
2005 (English)In: Journal of Cleaner Production, ISSN 0959-6526, Vol. 13, no 6, 619-629 p.Article in journal (Refereed) Published
Abstract [en]

This article examines the consequences of implementing extended producer responsibility (EPR). The analysis identifies to what extent EPR creates economic incentives, and what the financial consequences are. The case of car scrapping in Sweden is used as an example. EPR gives rise to two responsibilities; the consumer has the responsibility to return the product, the end-of-life vehicle, and the producer has the responsibility to handle the end-of-life management. EPR implicitly assumes that consumers will fulfil their responsibility without any economic incentive. This has no empirical support in the literature. The consumers will bear the costs associated with dismantling although the producer is responsible for the payment. This responsibility gives rise to a major future financial liability.

Keyword
Extended producer responsibility; Car scrapping; Economic incentives
National Category
Social Sciences
Identifiers
urn:nbn:se:liu:diva-14261 (URN)10.1016/j.jclepro.2003.12.017 (DOI)
Available from: 2007-01-31 Created: 2007-01-31
2. The Effect of a Premium in the Swedish Car Scrapping Scheme: An Econometric Study
Open this publication in new window or tab >>The Effect of a Premium in the Swedish Car Scrapping Scheme: An Econometric Study
2008 (English)In: Environmental Economics and Policy Studies, ISSN 1432-847X, E-ISSN 1867-383X, Vol. 9, no 1, 43-55 p.Article in journal (Refereed) Published
Abstract [en]

In order to handle the increasing problem of abandoned end-of-life vehicles (ELVs) in Sweden, an incentive system was introduced in 1975. One of the cornerstones of the system is a premium received by the owner when an ELV is returned for dismantling. The premium is intended to create an economic incentive to return the ELV. The European Union (EU) directive regarding extended producer responsibility for ELVs does not demand any incentive system. This study applied time series econometrics to model the relationship between the number of returned ELVs and the size of the premium using Swedish data. The main contribution of this study is that a positive relationship between the number of returned ELVs and the size of the premium was established. The results indicate that an increased premium would result in an increased number of returned ELVs. This implies that the efficiency of the EU directive could be increased if combined with an incentive system.

Keyword
econometrics, incentives in industry, automobiles, scrapping, European Union, Vehicles, premiums, transportation, economic models, Sweden, end-of-life vehicles, extended producer responsibility, public policy, time series econometrics
National Category
Social Sciences
Identifiers
urn:nbn:se:liu:diva-14262 (URN)10.1007/s10018-007-0138-6 (DOI)
Available from: 2007-01-31 Created: 2007-01-31 Last updated: 2017-12-13
3. The Economics of Environmental Law Enforcement: End-of-Life Vehicles
Open this publication in new window or tab >>The Economics of Environmental Law Enforcement: End-of-Life Vehicles
2007 (English)In: European Journal of Law and Economics, ISSN 0929-1261, E-ISSN 1572-9990, Vol. 23, no 3, 223-236 p.Article in journal (Refereed) Published
Abstract [en]

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.

Keyword
End of life vehicles, Extended producer responsibility, Law enforcement, Fine based system, Deposit-refund system, Environmental harm
National Category
Social Sciences
Identifiers
urn:nbn:se:liu:diva-14263 (URN)10.1007/s10657-007-9017-7 (DOI)
Available from: 2007-01-31 Created: 2007-01-31 Last updated: 2017-12-13
4. Financing a Car Scrapping Premium: A Comparison between a Pay-as-you-go System and a Funded System
Open this publication in new window or tab >>Financing a Car Scrapping Premium: A Comparison between a Pay-as-you-go System and a Funded System
2006 (English)Article in journal (Refereed) Submitted
Abstract [sv]

Syftet medavhandlingen är att studera hur ekonomin påverkas av utökatproducentansvar. Utökat producentansvar är ett sätt attinternalisera miljökostnader i marknadspriset. Producentansvaretför bilar, så som det implementerats i den svenska lagstiftningen,har lagts till den tidigare lagtiftningen utan några störreanpassningar. Effekterna av detta har inte tidigare utretts. Förstanalyseras dess konsekvenser i en översiktiglig artikel. Därefterföljer en ekonometrisk artikel vars syfte är att testa effekten avden nuvarande bilskrotningspremien. Det visade sig att en höjdpremie ökar antalet återlämnade fordon. Sedan används en rättsekonomisk ansats för att förutsättningslöstanalysera nedskräpningsproblematiken.Därefter jämförs två atlernativa sätt att finansiera premien, ettfonderat system jämförs med ett "pay-as-you-go" system. The purpose of this thesis is to encrease the understanding of howExtended Producer Responsibility (EPR) affects the economy. EPR isa principle stating that producers should be responsible for theenvironmental impacts of their products throughout the life cycle.In foru out of five essays, scrapping of end-of-life vehicles inSweden is used as an example.

Keyword
extended producer responsibility, end-of-life vehicles, economic incentives, growth, producentansvar, pantsystem, tillväxt
National Category
Social Sciences
Identifiers
urn:nbn:se:liu:diva-14264 (URN)
Available from: 2007-01-31 Created: 2007-01-31 Last updated: 2009-05-14
5. Does the financing of extended producer responsibility influence economic growth?
Open this publication in new window or tab >>Does the financing of extended producer responsibility influence economic growth?
2009 (English)In: Journal of Cleaner Production, ISSN 0959-6526, E-ISSN 1879-1786, 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.

Keyword
Extended producer responsibility; Financing; Overlapping generations model; Pay-as-you-go system; Public policy
National Category
Social Sciences
Identifiers
urn:nbn:se:liu:diva-16855 (URN)10.1016/j.jclepro.2008.07.002 (DOI)
Available from: 2009-02-21 Created: 2009-02-20 Last updated: 2017-12-13

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