Keywords: economics, France, incentives, packaging waste, waste management, recycling, packaging tax
The economics of packaging waste recycling in France: institutional framework and technological adoption
This paper explores the main features of the new regime for packaging-waste management in France introduced in 1992. A description of the institutional organisation is followed by an analysis of how the packaging tax implemented in France may encourage recycling techniques, combined with waste-to-energy facilities. Nevertheless, this may be offset by weak or even negative incentives, which may lead to a sub-optimal equilibrium. The conclusion is that institutional conditions are directly affecting the investment behaviour of municipalities. The consequence will be a development of recycling far below the objectives of policy-makers.