Kazuhiro Ueta

Professor, Graduate School of Economics, Kyoto University
(Faculty of Economics, Kyoto University, Yoshida-Honmachi, Sakyo-ku, Kyoto 606-01 Japan)

Abstract

Some economic aspects of industrial waste management system in Japan are analyzed. Cost saving behavior on industrial waste management of private enterprise leads in illegal dumping and /or inadequate waste disposal through adverse selection mechanism in the market. Industrial waste management problem mentioned above are also derived from the shortcomings of current waste management law and public administration and finance system. This paper has also analyzed the economic aspect of cost allocation issues of environmental restration for inadequate waste disposal site. The application of deposit-refund system to the environmental restoration system is to be very effective, if the difficulty for the public sector of the monitoring for illegal dumping is taken into account.

Key words: economic aspects, industrial waste management system, social cost, illegal dumping, deposit-refund system