The Economics of Recycling In France: Institutional Framework And Technological Adoption

The aim of this paper is to explore the main features of the new regime for packaging waste management established in France in 1992. A description of the institutional organisation is provided. Then, the paper analyses how the packaging tax implemented in France may allow the optimal application of recycling techniques, combined with waste-to-energy facilities. Nevertheless, this optimal utilisation is lessened by weak or even negative incentives which may lead to a sub-optimal equilibrium. The conclusion is that institutional conditions are directly affecting the investment behaviour of municipalities. The consequence will be the development of recycling at levels well below the objectives of policy makers.