Regulating Production Emissions of Consumer Durables

Abstract

This chapter extends the basic model of Sect. 2.2 in order to analyze environmental policy for consumer durables. We will focus on emissions generated during the process of producing the durable goods. Such emissions are important in many countries. For example, the study of Statistikbundesamt (2001) shows that in 1998, the German manufacturing industries generate about 44055 Mio. M³ of wastewater and about 672 Mio. tons of air emissions like CO₂, NO_x; or SO₂. The main part of these emissions arises in sectors producing durable goods or intermediate goods like e.g. metals or plastics which are employed in the production of durable goods.