2012
DOI: 10.1016/j.reseneeco.2012.06.001
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An economic analysis of the Packaging waste Recovery Note System in the UK

Abstract: In order to cope with the increasing scarcity of final dump sites for household wastes, the UK recently introduced an environmental policy targeted at the firms that produce and sell products that generate packaging wastes. This policy requires such businesses to hold predetermined numbers of tradable credits called "Packaging waste Recovery Notes" (PRNs). This article provides insights into the economic implications of such a policy through a simple analytical model of a recyclable product and the PRN markets… Show more

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Cited by 22 publications
(11 citation statements)
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“…Important interactions with other policy instruments also need to be addressed. For instance, Matsueda and Nagase [63] show, in the context of the UK scheme, that introducing a tradable recycling credit scheme together with a higher tax at the landfill could in fact raises the amount of landfill waste.…”
Section: Results Of the Evaluationmentioning
confidence: 99%
See 1 more Smart Citation
“…Important interactions with other policy instruments also need to be addressed. For instance, Matsueda and Nagase [63] show, in the context of the UK scheme, that introducing a tradable recycling credit scheme together with a higher tax at the landfill could in fact raises the amount of landfill waste.…”
Section: Results Of the Evaluationmentioning
confidence: 99%
“…They could perform the recycling themselves or they could purchase credits from others who have recycled more than their own obligation. A similar system exists in the UK since 1997, and it is known as the Packaging Recovery Notes (PRN) [62,63].…”
Section: Description and Assumptionsmentioning
confidence: 99%
“…However, this model can also be used to illustrate the mechanism behind a counter‐intuitive proposition derived by Matsueda and Nagase (). They show that an increase in the landfill tax rate could result in an increase in landfill waste if the landfill tax is implemented along with a mandatory recycling target.…”
Section: Effects Of a Landfill Taxmentioning
confidence: 99%
“…In other words, an increase in the waste management costs due to a higher landfill tax results in increased sorting activities and design efforts together with reduced consumption of the good. 15 However, this model can also be used to illustrate the mechanism behind a counter-intuitive proposition derived by Matsueda and Nagase (2012). They show that an increase in the landfill tax rate could result in an increase in landfill waste if the landfill tax is implemented along with a mandatory recycling target.…”
Section: Effects Of a Landfill Taxmentioning
confidence: 99%
“…At the end of each regulatory period, each UK product manufacturer must hold enough PRNs for the regulated materials used for packaging to comply with the recycled content target. In the UK scheme, one unit of PRN has corresponded to 1 ton of a material recycled (e.g., Matsueda and Nagase 2012). 12 The adoption of a minimum recycled-content target at Q S1 implies that the supply curve for primary materials must shift to the right by the same amount, i.e., from S V0 to S V1 .…”
Section: Tradable Recycling Credit Schemementioning
confidence: 99%