Under the assumption of imperfect competition in a durable good industry, the present paper investigates the efficient regulation of solid waste which causes environmental damage at the end of the product's life. It turns out that the second-best waste tax falls short of the marginal...

In a dynamic general equilibrium model we explictly consider the relationship between the product attributes 'durability' and 'recyclability'. Both efficiency and sustainability aspects are taken into account. It turns out (a) that durability may be inefficient even in a perfectly competitive...

This note corrects an error in the analysis of Goering/Boyce (1999) and extends their results. In this way, it refutes the claim that the durability of rented products plays a decisive role for the second-best emission taxation under imperfect competition.