Interactive aspects of producers and waste-disposal firms out of a market boundary

This paper examines how environmentally friendly production and disposal of waste are promoted by interaction between producers and disposal firms out of a market boundary. Utilizing the dual nature of price and quantity systems, I show that the concept of natural price or production price can be applied to constructing a sustainable economy, where production and waste disposal are made with a relatively small environmental burden. I demonstrate that such a sustainable economy can be created by extended producer responsibility.