The Competition of Recyclers under the Take Back Legislation

TL;DRAbstract

As the amount ofWaste Electrical and Electronic Equipment (WEEE)increases, the qualified recycler with the high technology and expensive cost have few supply of waste appliances. To solve this situation, China implements a series of take back legislations based on Extended Producer Responsibility. We want to investigate the competition under the take-back legislations. To this end, we make competitive decision under take back legislations with social planner intervention as a two period stage between qualified and unqualified recyclers. Deriving and computing equilibria, the results show that if the subsidy is small, the unqualified monopoly the market. When the subsidy is moderate, the two recyclers are both in the market. When the subsidy is large, the qualified recycler monopoly the market.

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