An Economic Analysis on Privatization of Processing Sector in the Used Durable Goods

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  • 使用済み耐久消費財における処理事業民営化の経済分析
  • シヨウ ズミ タイキュウ ショウヒザイ ニ オケル ショリ ジギョウ ミンエイカ ノ ケイザイ ブンセキ

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This paper analyzes which policy of a disposal fee (DF) and an advance disposal fee (ADF) is better in the processing of used durable goods such as the consumer electronic products and the cars. DF is a system that collects the disposal fee from the consumer when he takes out the waste. ADF is a system that collects it from the consumer when he buys the products. In addition, this paper compares DF with ADF under the two different ownership forms of processing sector in the used durable goods. One is the ownership form that the processing sector is a public firm that maximizes a social welfare, and another one is the ownership form that he is a private firm that maximizes own profit. The result of analysis is as follows. In the case that the processing sector is a public firm, DF can achieve a first best, on the other hand, ADF can not. Therefore, DF dominates ADF in this case. In the case that the processing sector is a private firm, both DF and ADF cannot achieve the first best. However, if the price of used durable goods and the disposal cost are small enough, ADF dominates DF.

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