Study on Establishment of the Extended Exporter Responsibility on the Used Product

Abstract

In recent years, a large number of Japanese used electric household appliances have been exported to Asian countries, and that has bad effects on constructing the recycling-based society of Japan, and that causes severe pollutions in Asian countries. This paper proposes the Extended Exporter Responsibility (EER) to solve that problem. The system of EER is that the Government levies the waste products export surcharge on a used electric household appliance exporting to Asia, and gives that surcharge back to Asian countries. We have verified mathematically that EER can internalize the external cost and can achieve the optimum distribution of the social cost and the maximum economic welfare between national recycle and international recycle.