The cost implications of waste reduction: factor demand, competitiveness and policy implications |
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| Authors: | Wendy Chapple Richard Harris Catherine J Morrison Paul |
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| Institution: | (1) Nottingham University Business School, Nottingham, UK;(2) University of Glasgow, Glasgow, UK;(3) Department of Agricultural Economics, and member of the Giannini Foundation, University of California-Davis, Davis, CA, USA |
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| Abstract: | Manufacturing produces both good and “bad” outputs, such as waste, which have negative environmental effects. Economic (e.g., tax) and non-economic (e.g., reputation) incentives encourage firms to reduce waste. However, such practices are costly because decreases in output produced or increases in inputs used may accompany waste reduction. We employ a cost function approach to evaluate patterns of output and waste production and capital, labor, and materials use, for UK manufacturing plants. We find that costs of waste reduction generally imply increasing materials use and capital and labor input saving, but vary by county, region, and industry. |
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| Keywords: | Waste reduction costs Input composition Corporate social responsibility Plant level data |
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