Advance disposal fee vs. disposal fee: A monopolistic producer’s durability choice model
نویسندگان
چکیده
This study examines how the timing of waste disposal fee collection affects producer’s choice built-in product durability and social welfare in a durable-goods monopoly model. We categorize policies into two: advance (ADF) policy (DF) policy. show that DF has two opposing effects on durability. Firstly, gives producer an incentive to increase order delay households’ discount future payments (the payment-discounting effect). Secondly, creates for consumers dump illegally mitigate payment fee, reduce avoid market saturation associated price cuts illegal-dumping When is low, effect dominates under policy, leading enhancement In this case, from viewpoint, may be more desirable than ADF if environmental damage with illegal dumping not serious. However, when high, induces dumping, reduces durability, inflicts damage. Therefore, socially high. Moreover, we consider oligopoly case find industry smaller power.
منابع مشابه
To fee or not to fee.
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ژورنال
عنوان ژورنال: Resource and Energy Economics
سال: 2021
ISSN: ['1873-0221', '0928-7655']
DOI: https://doi.org/10.1016/j.reseneeco.2021.101242