Wasting innovation - Barriers to entry and European regulation on waste electronic equipment

Mock, Dario and Perino, Grischa (2008) Wasting innovation - Barriers to entry and European regulation on waste electronic equipment. European Journal of Law and Economics, 26 (1). pp. 1-10. ISSN 1572-9990

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Abstract

The European Directive on Waste Electric and Electronic Equipment 2002/96/EC distorts incentives in regulated markets. Treatment of ‘historical waste’—i.e. products sold prior to 13 August 2005—is financed by all firms in the market at the time of disposal. This stimulates excessive pre-regulation output by incumbents for two reasons: a costs sharing effect and entry deterrence. Entry deterrence is achieved by raising the common costs of waste disposal. Entry is a main driver of innovation in the affected industries. The feasibility of a first best policy is discussed and an alternative rule superior to the status quo is presented.

Item Type:	Article
Faculty \ School:	Faculty of Social Sciences > School of Economics
Depositing User:	Gina Neff
Date Deposited:	14 Feb 2011 16:37
Last Modified:	03 Nov 2023 01:42
URI:	https://ueaeprints.uea.ac.uk/id/eprint/21358
DOI:	10.1007/s10657-008-9049-7

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