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The Old Newspapers Problem: Benefit-Cost Analysis of a Marketable Permit Policy

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Subject:
4. Economic Incentives and Other Innovative Approaches
4. Economic Incentives and Other Innovative Approaches - Trading and Marketable Permits
Environmental Media:
c. Land
c. Land - Solid Waste/RCRA
Authors:
Bingham, Tayler H.
Chandran, Ram V.
Dinan, Terry M.
EPA Project Officer/ Manager:
Dinan, Terry M.
Geographic Area:
United States, Canada
Study Purpose:
Empirical Application
Inventory Record #: EE-0355
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Research Organization:
Research Triangle InstituteAddress:
City: Research Triangle Park State: NC ZIP: 27709
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Environmental Protection Agency, Office of Policy, Planning and Evaluation, Economic Analysis BranchAddress:
City: Washington State: DC ZIP: 20460
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The report examines the potential economic effects of encouraging recycling of old newspapers with a marketable permit policy. The policy examined limits the aggregate quantity of virgin pulp available for use in newsprint production, thereby inducing producers to substitute old newspaperes for wood in pulp production. It would, however, let market forces decide where and to what extent individual newsprint producers substitute secondary fiber pulp for virgin pulp. This policy, the report says, would reduce the newspaper component of solid waste at the minimum possible social cost and would address an important market failure that results from an excess quantity of solid waste generation and disposal.


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Date Linked: 05/28/2009

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