Eichner, Thomas; Runkel, Marco - In: Environmental & Resource Economics 30 (2005) 3, pp. 259-278
Using a dynamic durable good model, we investigate efficiency-restoring policy schemes in case of free garbage disposal. In the long-run, efficiency is attained by a subsidy on recyclability of the durable and a tax on the purchase of the durable. On the short-run adjustment path, in contrast,...