The Dynamic Effects of Recycling on Oligopoly Competition: Evidence from the US Paper Industry

• 成果类型: Article
• 署名作者: Watkins, Eddie
• 刊物名称: AMERICAN ECONOMIC JOURNAL-MICROECONOMICS
• ISSN/ISSBN: 1945-7669
• DOI: 10.1257/mic.20200301
• 发表日期: 2024
• 页码: 76-106
• 关键词: Monopoly; mergers; POWER; alcoa; pulp

摘要

Consumer recycling generates new intermediate inputs. If some of the inputs are used to manufacture a substitute for the original product, , the primary seller faces an incentive to reduce current output and raise rivals' future costs. I find that firms in the US paper industry facing exposure to future competition from the recycled sector, , based on differences between product specific recycling technologies, , reduced output more than firms not exposed to the recycled sector as consumer recycling increased. I then use the model to illustrate how the strategic response to recycling affects environmental policy. ( JEL D43, L13, L73, Q53, Q58) )