Font Size: a A A

The Impact Of Recycling Economy On Modern Economics Environmental Policies And Property Rights Theory

Posted on:2008-11-08Degree:MasterType:Thesis
Country:ChinaCandidate:F J JinFull Text:PDF
GTID:2189360215952085Subject:Western economics
Abstract/Summary:PDF Full Text Request
The petroleum consume of China became the second of the world at the first time in 2003, that was dependent on impartment to 32%. With the short of resources, impartment of resources is more and more important for Chinese economic development. Tough Chinese GDP is still less than Japan and the United States, the impartment of the resources, such as iron and petroleum etc., have played a important role to the market of the world. However Chinese economic development can not dependent on the impartment of resources forever. Just think, when the Chinese GDP comes to the level of Japan or American, can the market of world still bear China? So we have to consider and valued the rise of using efficiency of resources.Recycling economy has become globalize. But recycling economy is hardly carried on. Actually in order to carry on it, we have to make the individual needs as the same as the social needs. Only if we do this, we can get the Nash equilibrium. This paper pays the attention to recycling economy, and tries to find how we can carry on it well. I hope conclusions in accordance with experience in this paper can afford reality some lessons.This paper includes three aspects:First, how to protect individual rights and social benefits. People make use of various means (such as, parading objection pollution profession and putting forward to lift the new law laws etc.) to influence production prices. They request to raise the prices of bads, and like the goods more and more. In this paper, we try to give the explanation to the phenomenon. The third people have the different value from the consumer and producer. They request to raise the price of resources. Second, take the prepaying system as an example to build up the model on thereason why producers do not agree on the prepay system.Let's define each variable first:P: Price of produce, C: Consume, L: the amount of labor that recover container, R: The quantity of the container recovered, I: the benefits come from the consume of other product, M: the clean benefits come from the consume of other product, D1: Prepaying, D2: returning. R= m* L( the m is big in 0) M=I - (P+D1)*c + D2*R (1)In order to show the economic result, let's define the utility function of consumers: U= u(C) + h (L) + M (u` > 0, u``< 0, h` > 0, h`` < 0) Defined h (0) =0The recovering cost of R is: - H(R/ m), the marginal cost of R is:-h`/mUnder the function (1), in order to attain the maximal utility, the consumption of the consumer and returning amount of container is: U` (C) = P + D1, - h`(R/m)/m = D2 (2)We draw the conclusions as follows:1. The quantity of consume is less than without prepaying system.2. The quantity reduced and prepaying is negative related, and returning and prepaying are positive related. So as far as the environmental protection is concerned, the prepaying should be as much as it is. But this will reduce consume at the same time.Concerning prepaying, the cost of recovering the containers is:W(C- R), the benefits of recovering the containers is: r* R G(C): the cost of productionSW: Social welfare. The net benefits of consume– the cost of recovering - exterior uneconomical+ the net benefits of recovering SW= u(C) - G(C) + h(R/m) - W(C- R) + r* R (3)According to function (3), the maximal condition is: U`(C)– G`(C) = w, -h`(R/m)/m = w + r (4)We can get the conclusion: the net marginal benefit of consume and the exterior uneconomical expenses of abandoning are equal, and the marginal costs of recovering and the sum of the marginal exterior expenses and the net benefits of recovering are equal.On the other hand, as the theoretical maximum marginal cost G` (C) of the producer's action equals the price P, that is P = G` (C). Then when w = D1, D2 = w + r the equation of (2) equals the equation of (3)Then we come to the conclusion: the most proper amount of the prepaying equals the marginal external cost caused by abandoning the waste containers,and the proper returned payment equals the marginal net benefit plus the recycling value. Greater prepaying is more suitable to deal with larger marginal external costs products, such as that is harmful to the human body. Under normal circumstances, the recovering payment and the prepaying are not the same.The introduction of the prepaying system can lead to the reduction of the market trade volume reduction, the decline of the producers'profit. So producers take negative attitude to the introduction of the prepaying system. Therefore, in current circumstance, we have to dispose the effects of the situation before introducing the prepaying system. For example, greatly increase the initial price of the raw materials and energy prices and so on. We can also reduce the profit of non-economic to promote the recycling economy.Third, if all the general enterprises and individuals don't have the right to desert any rubbish, they will not interest in the studying of reducing the amount of refuse and garbage recycling. There is no enthusiasm of people to cyclical economic model. This paper attempts to give a new ownership arrangement which can enable factories and individuals to control the garbage actively. The Recycling Economy gives no one the "pollution rights." We have to solve the problems of how to deal with the individuals who violate the rights and how to refuse the violation. This requires a constraint chain of interest. So we give the "pollution rights" to an entity that prevent pollution such as"waste reusing enterprises." Thus we can bring all the manufacturers, consumers, and waste reuse enterprise into an interest constraint chain.
Keywords/Search Tags:recycling economy, saving society, environment policies, property rights
PDF Full Text Request
Related items