Public policies toward the use of scrap materials
Proposals that have been considered to stimulate the flow of recycled materials are discussed. The thrust of proposals is that recycling rates are too low and that the Federal government should offer incentives to aid the competitive position of secondary materials sector. This paper examines principal economic arguments that have been offered in support of a Federal program of recycling incentives and analyzes some of the recent legislative proposals in light of available information on the structure of the secondary materials industry. Arguments advanced in support of recycling incentives is that tax equity should be established between recyclers and primary material producers. (Depletion deductions were supported in H.R. 148). A second argument is based upon market failure attributable to external diseconomies in primary material production (air and water pollution and disruption of scenic natural environments). Because resource recovery would lessen these environmental damages and create few new ones of its own, one may wish to subsidize the secondary materials industry. The force of this argument has been reduced by statutes such as the National Environmental Policy Act, the Federal Water Pollution Control Act, and the Clean Air Act. The existing pattern of municipal subsidization of postconsumer waste disposal constitutes a deterrent to recycling. A final argument is that the existing structure of Federal regulation favors primary production over secondary material recovery and should be balanced with incentives for recycling. Specifically, the evaluation of recycling subsidies proposed in H.R. 148 and H.R. 10612 is made. H.R. 10612 would grant to purchasers of recyclable materials credits against income tax liabilities. Other approaches involve loan guarantees for recycling facilities, governmental stockpiling to stabilize supply and demand for secondary materials, and the creation of futures markets for secondary materials to reduce price uncertainty. (MCW)
- Research Organization:
- Environmental Law Inst., Washington, DC
- OSTI ID:
- 7306027
- Journal Information:
- Am. Econ. Rev.; (United States), Vol. 67:1
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
MATERIALS RECOVERY
ECONOMICS
GOVERNMENT POLICIES
MUNICIPAL WASTES
RECYCLING
RESOURCE CONSERVATION
CHARGES
CLEAN AIR ACT
CONSUMPTION RATES
DEMAND FACTORS
ECONOMETRICS
LEGISLATION
MARKET
MINERAL RESOURCES
NATIONAL ENVIRONMENTAL POLICY ACT
TAXES
WATER POLLUTION CONTROL
LAWS
MANAGEMENT
POLLUTION CONTROL
POLLUTION LAWS
PROCESSING
RECOVERY
RESOURCES
WASTE MANAGEMENT
WASTE PROCESSING
WASTES
291000* - Energy Planning & Policy- Conservation
293000 - Energy Planning & Policy- Policy
Legislation
& Regulation
320604 - Energy Conservation
Consumption
& Utilization- Municipalities & Community Systems- Municipal Waste Management- (1980-)