B azilian Jou nals o Business
ISSN: 2596-1934
921
B az. J. o Bus., Cu i iba, . 3, n. 1, p. 921-937 jan. /ma . 2021
E aluación de las polí icas de ges ión de acei es usados: la esponsabilidad
ampliada del p oduc o
E alua ion o was e oil managemen policies: he ex ended p oduce
esponsibili y
DOI: 10.34140/bjb 3n1-052
Recebimen o dos o iginais: 20/11//2020
Acei ação pa a publicação: 20/12/2020
Asunción A ne Güe e
PhD in Economics (Uni e si y o Za agoza)
Depa men o Applied Economics
C/ G an Vía 2, 50005 Za agoza (Spain)
Co eo elec ónico: aa ne @uniza .es
RESUMEN
El Real Dec e o 679, de 2 de junio de 2006, de ges ión de los acei es indus iales usados, es ablece
la esponsabilidad ampliada del p oduc o (RAP). Pa a su aplicación se cons i uye el Sis ema
In eg ado de Ges ión de Acei es Usados en España (SIGAUS), sus i uyéndose la inanciación de la
ges ión de los acei es usados median e sub enciones po los impo es ecaudados de la apo ación
del p oduc o de acei es lub ican es. A su ez, el eal dec e o es ablece los obje i os
medioambien ales de ecogida del 95% de acei es usados gene ados, alo ización del 100% de
acei es usados ecogidos y egene ación del 55%, en 2007, y el 65%, desde 2008. La ex ensión de
la RAP en 2015 a o os esiduos, que con ienen acei es usados, modi ica la esponsabilidad
inancie a de SIGAUS. Asimismo, en 2016, es necesa io dispone de mecanismos de inanciación
adicionales, indexados a la co ización in e nacional de los lub ican es. Es e abajo iene po obje o
analiza la e iciencia de la RAP en la ges ión de los acei es usados. La me odología consis e en la
es imación de las elas icidades de o e a y demanda, así como el desa ollo de un modelo de
equilib io pa cial, del me cado de acei es usados. De acue do con los esul ados, la RAP cons i uye
un es ánda de ma e ial eciclado, basado en un sis ema de pe misos negociables, y es más e icien e
que una sub ención. El p ecio del pe miso jus i ica la apo ación del p oduc o a SIGAUS de 60 €
po onelada. Finalmen e, los esul ados sugie en que la RAP ga an iza la inanciación de la ges ión
del acei e usado has a 2015.
Palab as cla e: Acei es usados, Regulación medioambien al, E iciencia, Responsabilidad
ampliada del p oduc o , Sub enciones.
ABSTRACT
Royal Dec ee 679/2006 o June 2 on he managemen o used indus ial oils manda es he p oduce
ex ended esponsibili y (EPR). Fo i s implemen a ion, he In eg a ed Was e Oil Managemen
Sys em (SIGAUS) is es ablished, eplacing he inancing o he managemen o was e oils h ough
subsidies o he amoun s collec ed om he con ibu ion o he p oduce o lub ica ing oils. In u n,
he oyal dec ee se s en i onmen al a ge s o collec ing 95% o was e oils gene a ed, he eco e y
o 100% o was e oils collec ed, and egene a ion o 55%, in 2007, and 65%, since 2008. The
ex ension o EPR in 2015 o o he was e, con aining was e oils, modi ies SIGAUS' inancial
esponsibili y. Addi ional inancing mechanisms, indexed o he in e na ional quo e o lub ican s,
a e also needed in 2016. This wo k aims o analyze he e iciency o EPR in he managemen o
B azilian Jou nals o Business
ISSN: 2596-1934
922
B az. J. o Bus., Cu i iba, . 3, n. 1, p. 921-937 jan. /ma . 2021
was e oils. The me hodology consis s o es ima ing supply and demand elas ici ies and de eloping
a pa ial equilib ium model o he was e oils ma ke . Acco ding o he esul s, EPR is a ecycled
ma e ial s anda d (RMS), based on a nego iable pe mi sys em (NPS), and is mo e e icien han a
subsidy. The p ice o he pe mi jus i ies he p oduce 's con ibu ion o SIGAUS o 60€ pe on.
Finally, he esul s sugges ha he EPR gua an ees he inancing o was e oil managemen un il
2015.
Keywo ds: Used oils, En i onmen al policy, E iciency, Ex ended p oduce esponsibili y,
Subsidies.
1 INTRODUCTION
Royal Dec ee 679/2006 o June 2 on used indus ial oils es ablishes EPR o he managemen
o indus ial oils used in Spain. Was e oils a e haza dous was e and include all mine al o syn he ic
oils, indus ial o lub ica ion, which a e no longe sui able o he in ended ini ially use
1
. Was e oils
a ec ed by Royal Dec ee 679/2006 a e used mine al oils om combus ion engines and ansmission
sys ems, lub ican s, u bines, and hyd aulic sys ems, and mix u es and emulsions con aining hem
and excluding ma ine and a ia ion, p ocess, and g ease oils. The EPR, in he managemen o was e
oils, means ha manu ac u e s o lub ica ing oils mus ensu e he co ec managemen o he was e
oils deli e ed o hem, companies, o wo kshops, o comply wi h he obliga ion o deli e y o was e
oils o au ho ized manage s, as well as o co e he o al cos o he managemen ope a ions
2
.
Royal Dec ee se s he ecological a ge s o collec ing 95% o was e oils p oduced and he
eco e y o 100% o he was e oils collec ed in 2006. Besides, he egene a ion o 55% in 2007 and
65% in 2008 o he oils eco e ed
3
. Addi ionally, Royal Dec ee 679/2006 imposed on manu ac u e s
he obliga ion o de elop a BPP o es ablish measu es o p e en he en i onmen al impac o
indus ial oil was e, o educe i s gene a ion and o acili a e i s alo iza ion, p e e ably h ough
egene a ion o o he o ms o ecycling, and o inco po a e egene a ed base oils in o i s
composi ion
4
. Manu ac u e s o indus ial oils can ensu e he collec ion and managemen o oils i ,
oge he wi h o he economic ope a o s, hey o ganize in eg a ed managemen sys ems (IMS)
1
B.O.E. o June 3, 2006, No. 132.
2
Law 22/2011 o July 28 on con amina ed was e and soils ansposes Di ec i e 2008/98/EC, he Was e F amewo k
Di ec i e, es ablishes a common legal amewo k o he implemen a ion o he EPR (B.O.E. o 29, July 2011, No. 181).
3
Regene a ion consis s o emo ing con aminan s, oxida ion p oduc s, and addi i es con aining was e oils o ob aining base
lub ica ing oil (Angulo e al.,1996; Gómez-Miñana, 1993; LLobe Díaz, 1995 and Ramsden, 1995). The base lub ica ing oils, i s
e ined o egene a ed, a e mixed wi h addi i es o achie e he quali y and pe o mance le els equi ed o manu ac u e lub ican s
acco ding o hei des ina ion (au omo i e and indus ial uses). In Spain, he pe o mance o ins alled echnologies, o ob aining
egene a ed oil om used oil, anges om 60 o 75%. Combus ion, o was e oils as uel, cons i u es ano he o m o eco e y o he
used oil, ollowing a decon amina ion p ocess.
4
Cu en ly, BPP o he pe iod 2018-2021 is in o ce (SIGAUS, 2020).
B azilian Jou nals o Business
ISSN: 2596-1934
923
B az. J. o Bus., Cu i iba, . 3, n. 1, p. 921-937 jan. /ma . 2021
au ho ized and con olled by he Au onomous Communi ies
5
. In 2006, he leading manu ac u e s o
lub ican s in Spain cons i u ed he In eg a ed Was e Oil Managemen Sys em (SIGAUS), by which
inancing he managemen o was e oils is ca ied ou by he lub ican oil manu ac u ing sec o . The
unding o managing was e oils h ough public subsidies is eplaced by he amoun s collec ed om
he p oduce 's con ibu ion o SIGAUS o 0.06 € pe kilog am o indus ial oil placed on he ma ke .
Cu en ly, EPR applies o o he was e. Royal Dec ee 110/2015 o Feb ua y 20 on was e
elec ical and elec onic equipmen (WEEE) has mean ha he esponsibili y o he oils con ained
in he esidues o hose p oduc s is ans e ed om he lub ican manu ac u e o he manu ac u e
o hose p oduc s. Consequen ly, i supposed a u he alloca ion o esponsibili ies o was e oils
subjec o Royal Dec ee 679/2006. Acco ding o he 2015 ma ke s udy, wi h he en y in o o ce o
Royal Dec ee 110/2015, SIGAUS' ma ke sha e inc eases om 87.13% o 87.15%, and he aud
bag i olun a ily assumes, as majo i y IMS, namely ee ide s, dec eased om 2.89% o 1.41%, o
was e oil a ec ed by Royal Dec ee 679/2006
6
.
Consequen ly, new egula ions on was e oils in WEEE modi ied he inancing esponsibili y
o was e oils o he i s en yea s. Besides, in 2016 he con ex o low oil p ices has highligh ed he
need o an addi ional inancing mechanism o co e he in insic sho all in was e oil collec ion
and managemen ac i i ies, acco ding o he Independen Commodi y In o ma ion Se ices Index
(ICIS)
7
. In 2017, by Royal Dec ee 20/2017, o Janua y 20, on end-o -li e ehicles (ELV) whe ein
esponsibili y o oils con ained in such ehicles is ans e ed o he manu ac u e o such ehicles
8
.
Economic incen i e policies' e iciency in p omo ing he collec ion and co ec managemen o
was e oils in Spain has p e iously been s udied in A ne e al. (2005, 2006b). The main inding was
ha an RMS, applied h ough a SPN, is mo e e icien han a subsidy because he ma ginal p i a e
cos (MPC) o an RMS is lowe han he MPC o a subsidy. Besides, he IMS o was e oil is an
RMS (A ne , 2010). A e en yea s o EPR in he managemen o was e oils, he objec i e o his
wo k is o analyze he e iciency o his policy o de e mine he p ice o he pe mi and he
con ibu ion o he lub ican p oduce o SIGAUS, and i s MPC, o upda e he da a se ies.
5
In eg a ed was e oil managemen sys ems a e he se o ela ionships, p ocedu es, mechanisms, and ac ions which, subjec o
au ho iza ion and supe ision by he au onomous communi ies in whose e i o ial a ea hey a e implemen ed, a e pe o med by he
economic ope a o s conce ned h ough olun a y ag eemen s app o ed o au ho ized by o h ough collabo a ion ag eemen s wi h
he compe en public adminis a ions.
6
Independen ma ke s udy conduc ed by he consul an independen PwC (SIGAUS, 2016,a).
7
SIGAUS (2016b).
8
In 2018, he ma ke a ec ed by di e en EPR egula ions accoun s o 83% o he o al lub ican ma ke o 462,573 ons. The
emaining 17% co espond o g eases, p ocess oil, o ma ine oils subjec o he Ma pol Con en ion. The ma ke sha e subjec o EPR,
excluding oil expo ed (in elec ical and elec onic equipmen , componen s, and ehicles), co esponds o SIGAUS a 86.48%
(including uniden i ied oils, 2.19%, and a ma gin o e o o 0.1%); WEEE a 0.60%; ELV a 5.38%; IMS independen p oduce s
(SIGPI) a 6.56%, and Au omo i e impo s a 0.99% (SIGAUS, 2020).
B azilian Jou nals o Business
ISSN: 2596-1934
924
B az. J. o Bus., Cu i iba, . 3, n. 1, p. 921-937 jan. /ma . 2021
The me hodology o assessing he e iciency o he EPR consis s o de eloping a pa ial
equilib ium model o he was e oils ma ke and calcula ing he incidence and MPC o his policy.
The empi ical applica ion o IMS o was e oils in Spain consis s o es ima ing a coin eg a ion
equa ion be ween he a iable amoun o was e oils in ended o egene a ion, WOR, and he i s
e ining base lub ica ing oils p ice, in nominal e ms FRP, using Dynamic O dina y Minimum
Squa es (DOLS). Acco ding o he esul s, he EPR is mo e e icien han a subsidy being,
espec i ely, he MPC o hese policies -1.25 and -1.55. In u n, he p ice o he pe mi , equal o
0.86 eu os pe on, allows ob aining he alue o he lub ican manu ac u e 's con ibu ion o
SIGAUS, o 60 eu os pe kilog am.
The wo k has he ollowing sec ions. Subsequen ly, he economic li e a u e e iew on he
e iciency o economic incen i e policies in was e managemen . The nex sec ion p esen s he
analysis o he e iciency o EPR in was e oil IMS. Sec ion ou and i e a e e e ing o he
empi ical applica ion o he Spanish was e oil ma ke and esul s. The las sec ion summa izes he
main conclusions.
2 REVIEW OF ECONOMIC LITERATURE
F om an economic pe spec i e, was e gene a ion is concep ualized as a nega i e ex e nali y
de i ed om p oduc ion and consump ion ac i i ies. The paymen sys ems o was e gene a ed
allow in e nalizing hese cos s and gene a ing he op imal amoun o was e. Howe e , his policy
c ea es a clea incen i e o illegal dumping and incine a ion (Jenkins, 1993). Al e na i ely, o
educe he amoun o was e o be disposed o , economic analysis conside s policies ha p omo e
ecycling. The main incen i es a e deposi - e und sys ems (DRS), axes on na u al aw ma e ials,
ecycling subsidies, and RMS.
The DRS is de ined as he combina ion o a p oduc ax and a ecycling subsidy. Va ious
au ho s (Dinan, 1993; Fulle on and Kinnaman, 1995; Sigman, 1995; Palme and Walls, 1997 and
1999) poin ou ha he SDR is an e icien policy o educe he amoun o was e o be disposed o
because hey combine he wo e ec s ha cha ac e ize a Pigou ian ax: educing he p oduc and
eplacing na u al inpu s wi h ecycled ones
9
. I applied indi idually, p oduc axes in luence only
he educ ion in o igin and ecycling subsidies, and consequen ly, hey miss he possibili y o
educing he amoun o was e o be disposed o by combining he wo policies (Palme and O he s,
1997). Howe e , he high cos s o implemen ing he DRS ha m he ela i e e iciency o his policy.
9
Fulle on and Wol e on (2000) gene alize he SDR and assimila e i o a p oduc ax and a subsidy o clean ac i i y (emission
con ol, ecycling, o disposal in a con olled land ill).
B azilian Jou nals o Business
ISSN: 2596-1934
925
B az. J. o Bus., Cu i iba, . 3, n. 1, p. 921-937 jan. /ma . 2021
I a DRS is applied o p oduce s a he han consume s, he cos dec eases because he numbe o
agen s and p oduc s conce ned is lowe
10
.
In u n, he DRS is consis en wi h he p inciple o p oduce esponsibili y and EPR
11
. The
ax holds p oduce s accoun able o disposal cos s and encou ages he educ ion o was e and he
weigh o p oduc s - i es ablished on in e media e p oduc s - and he ecycling subsidy p omo es
he use o ecycled ma e ials (Palme and Walls, 1999). Reducing he weigh o p oduc s is pa o
a company's s a egy o he design and cha ac e is ics o i s p oduc , pa icula ly, i s ecyclabili y
12
.
Calco and Walls (2005) poin ou ha , in he absence o e icien ma ke ope a ion, an DRS, join
wi h a inal elimina ion ax, encou ages a design ha p omo es a su icien le el o ecycling
13
.
Taxes on na u al aw ma e ials educe he amoun o inal p oduc and he use o na u al
esou ces and ecycling i he ma ginal p oduc i i y o na u al and ecycled inpu s di e s and,
he e o e, he op imal solu ion in ol es subsidizing he inal p oduc (Palme and Walls, 1994).
Only i he ma ginal p oduc i i y o na u al and ecycled inpu s is cons an and equal o uni y is his
policy e icien (Miedema, 1983; Sigman, 1995). Recycling subsidies encou age ecycling, bu also
consump ion and he amoun o was e gene a ed (Miedema, 1983; Palme and Walls, 1994; Sigman,
1995; Palme and o he s, 1997). In his case, he op imal solu ion equi es a p oduc ax o be
applied.
The RMS in p oduc ion, o obliga ion o con ain a pe cen age o ecycled inpu s in hei
composi ion, encou ages ecycled ma e ials. Howe e , i he ma ginal p oduc i i y o hese
ma e ials is ela i ely high, hey inc ease he amoun o p oduc and was e and he p oduc mus be
axed; o he wise, he p oduc mus be subsidized (Palme and Walls, 1997). RMS can be es ablished
indi idually o each company o indus y, h ough an NPS, which p o ides g ea e lexibili y and
educes i s cos (Dinan, 1992; Palme e al., 1995). This sys em in ol es he exchange o pe mi s
be ween hose companies ha use o e - ecycled inpu s ela i e o he s anda d and hose ha do no
comply. The la e mus acqui e pe mi s o comply wi h he obliga ion imposed by he s anda d. The
cos o RMS depends on he cha ac e is ics wi h which he pe missions sys em is de ined. I he
numbe o pe missions is se ela i e o he s anda d, RMS will be e icien . O he wise, he esul
10
The cu en in eg a ed managemen sys ems o which he p oduce is esponsible o he was e gene a ed by i s p oduc s - such as
packaging managemen sys ems - cha ge a ee o collec ing and sepa a ing was e. This a e is a p oduc ax and he e o e does no
encou age ecycling (Palme and Walls, 1999).
11
The p inciple o p oduce esponsibili y implies some o m o inancial esponsibili y o he manu ac u e managing he was e ha
will gene a e his p oduc .
12
The design o he p oduc s cu en ly acqui es g ea ele ance in was e managemen . The acili y o managing a p oduc o be
ecycled is al e na i ely de ined as a p oduc ’s cha ac e is ic (Fulle on and Wu, 1998). Besides, i is de ined as he company’s cos
(Calco and Walls, 2000) o he con en o speci ic ma e ial in he p oduc (Eichne and Pe hig, 2001).
13
The ax, lowe han he Pigou ax ha would co ec ex e nali y in he spill, would incen i ize he educ ion o was e by amilies
wi hou gene a ing se ious illegal disposal p oblems. The op imal design ha maximizes ecycling could only ob ained h ough he
e icien unc ioning o he ma ke .

B azilian Jou nals o Business
ISSN: 2596-1934
926
B az. J. o Bus., Cu i iba, . 3, n. 1, p. 921-937 jan. /ma . 2021
will be unde ined, and he cos will be g ea e han he cos o a p oduc ax (Sigman, 1995). In
gene al, e en es ablishing he nego iable pe mi sys em, RMS in luences ecycling, bu no
p e en ion in was e gene a ion, and he p oduc should be axed (Walls and Palme , 2001; Walls,
2003).
3 EFFICIENCY OF THE EPR IN WASTE OILS IMS
Since 2007, SIGAUS has me he collec ion and egene a ion objec i es se by he Royal
Dec ee 679/2006 (Table1). Also, he pe cen age o was e oil gene a ion o lub ican consump ion
has been highe han he ini ial es ima e o he Minis y o he En i onmen , o 40%. In IMS, he
a io o used oil p oduced, and lub ican consump ion is changed in each iscal yea , wi h a a ia ion
in 2006-2015, be ween 41.68% and 49.5%. As a esul , he sha e o was e oil gene a ion in IMS is
45%, o he en i e pe iod, while he sha e o was e oils in ended o egene a ion is 69%. In u n,
he a e age consump ion o lub ican s and he amoun o was e oils gene a ed o ha pe iod a e
equal, espec i ely, o 280,000 ons and 126,000 ons.
Table 1. Consump ion o lub ica ing oils (LC), was e oils collec ed and in ended o bu ning (WOB), egene a ion
(WOR), and consump ion o egene a ed base oil (RBO)
Yea
LC
(1)
Was e oil
gene a ed
%
Was e oil
collec ed
Collec ion
a e
WOB
%
WOR
%
RBO
(2)
(2)/(1)
%
2005
515.600
40,00
206.240
100,00
33,72
65,53
84,050
16,30
2006
507.000
40,00
202.800
100,00
34,61
64,66
86,241
17,00
2007
415.421
41,68
173.151
100,00
26,40
73,60
82,434
20,00
2008
373.461
48,22
180.070
100,00
30,40
69,60
80,065
21,00
2009
312.662
49,50
154.775
100,00
33,20
66,80
65,193
20,00
2010
321.304
44,27
142.237
100,00
33,70
66,30
60,741
19,00
2011
302.265
44,48
134.452
100,00
30,97
69,02
60,695
20,08
2012
276.025
46,98
129.663
100,00
34,50
65,50
54,090
20,00
2013
268.589
47,21
126.796
100,00
35,00
65,02
53,388
19,80
2014
278.341
45,3
126.089
100,00
30,08
69,92
56,900
20,44
2015
291.670
41,39
120.715
100,00
21,23
78,77
61,537
21,00
No e: since 2006, lub ica ing oil a ec ed by Royal Dec ee 679/2006 o June 2 and he used oil collec ed by SIGAUS
Own sou ce
This sec ion p esen s a pa ial equilib ium model o he was e oils ma ke o assess he
e iciency o di e en economic incen i e policies p oposed in he managemen o was e oils
14
. In
he ma ke o lub ica ing oils, he p oduc ion and consump ion o he e ined and egene a ed base
oils (BO) is added wi h he pe cen age, ɣ, o addi i es inco po a ed o he manu ac u e o
lub ican s, o de e mine he p oduc ion o lub ica ing oils (LO). The sha e o addi i es in lub ican s’
composi ion has e ol ed wi h he di e en ia ion o lub ican s and hei p ac ical applica ion
14
A mo e de ailed analy ical de elopmen o he pa ial equilib ium model o he was e oil ma ke was in A ne e al. (2005, 2006b).
B azilian Jou nals o Business
ISSN: 2596-1934
927
B az. J. o Bus., Cu i iba, . 3, n. 1, p. 921-937 jan. /ma . 2021
cu en ly a ound 20%. I EPR is applied in he managemen o was e oils, he pe cen age o was e
oil gene a ion om he consump ion o lub ica ing oils, α, is modi ied each yea acco ding o he
was e oils collec ed by he IMS (Figu e 1). In 2006-2015, he α coe icien is be ween 41.4% and
49.5% (Table 1). In u n, was e oils a e in ended o egene a ion in a a iable pe cen age, μ, which
in IMS is a leas 65%.
Figu e 1. P oduced Used Oil (WOP) and Regene a ed Base Oil (RBO) in IMS
Sou ce: own sou ce
Consequen ly, as base oils a e he undamen al componen o lub ica ing oils, he
equilib ium p ice o base oils de e mines he equilib ium p ice in he lub ican oil ma ke . I P is he
p ice o base oils, he supply unc ion o was e oils in ended o egene a ion is,
=()au S P
(1)
In u n, i δ is he pe o mance o he egene a ion p ocess o pe cen age o he gene a ion
o egene a ed oils om was e oils, he supply unc ion o egene a ed base oils is
15
,
()ab au S S P=
(2)
The e o e, he equilib ium condi ion in he ma ke o egene a ed base oils, i Dab (P) is he
demand unc ion o egene a ed base oils is,
( ) ( )au ab S P D P=
(3)
F om equa ion (3), he a io o he elas ici ies o he supply unc ion o egene a ed base oils,
Es, and he demand unc ion o egene a ed base oils, Ed, is ob ained (4)
s s d dE dP E dP=
Whe e Ps is he supply p ice and Pd he demand p ice.
15
In he IMS, he pe o mance o he egene a ion p ocess is 65%.
- Base oil
(BO)
% addi i es: ɣ
(20%)
•Lub ica ing
oils (LO)
% WOP: α
(41,4 % -
49,5%) •Was e oil
p oduced
(WOP)
% WOR: µ (≥
65% in IMS)
•Was e oil o
egene a ion
(WOR)
Regene a ion
yield: δ (65%) •Regene a ed
base oils
(RBO)
% RBO/LO (≥
20% in IMS)
B azilian Jou nals o Business
ISSN: 2596-1934
928
B az. J. o Bus., Cu i iba, . 3, n. 1, p. 921-937 jan. /ma . 2021
Equa ion (4) allows analyzing he e iciency o he economic incen i e policies p oposed o
managing was e oils -a subsidy s and an RMS based on an NPS- o p omo e he collec ion and
egene a ion o was e oils, by calcula ing he ma ginal incidence and MPC o hese policies.
I s is a subsidy pe uni o egene a ed base oil, Ps and Pd di e by he equa ion,
(1 )dsP P s=−
(5)
The e o e, he a io o supply and demand elas ici ies in equa ion (5) is,
()s s d d sE dP E dP d−=
(6)
Consequen ly, he ma ginal incidence o a subsidy, s, on Ps is,
sd
s d s
dP E
d E E
=−
(7)
Finally, being he ma ginal incidence o a subsidy, s, on Pd,
ds
s d s
dP E
d E E
=−
(8)
The MPC o his policy, de ined as ma ke p ice educ ion, Pd, because o a subsidy, is
ob ained by eplacing he le el o in e en ion co esponding o dPs in equa ion (8),
s
ss
d
E
CPM dP
E
=
(9)
The e o e, i supply elas ici y, Es, is posi i e and demand elas ici y, Ed, nega i e, he subsidy
implies he supply p ice, Ps, inc easing, and he educ ion o he demand p ice, Pd.
The RMS in he manu ac u e o lub ica ing oils (LO) is he obliga ion o he p oduce s o
lub ica ing oils o inco po a e a ce ain pe cen age o egene a ed base oils * (RMS = * LO). I
se o he indus y, RMS is based on an NPS. In he applica ion o EPR, he manu ac u e o
lub ica ing oils inances he managemen o was e oils gene a ed by lub ican s placed on he ma ke ,
e ined, and egene a ed oils. Consequen ly, he lub ican p oduce eplaces e ined base oils wi h
egene a ed ones. The e o e, each uni o egene a ed base oil esul s in 1/ * nego iable pe mi s. I
he pe mi p ice is

, he egene a o ob ains a subsidy equal o
*

. Subsequen ly, he ma ginal
incidence o he pe mi p ice,

, on Ps is,
1*d
s
ds
E
dP
d E E

=−
(10)
In u n, equilib ium equi es a second condi ion ega ding he ma ke o nego iable pe mi s
(NPS). In ha ma ke , he supply unc ion SNP(

) is gi en by he a io be ween he quan i y o
egene a ed oils p oduced, i he egene a o ecei es a subsidy,
*

, and *. The demand unc ion,
B azilian Jou nals o Business
ISSN: 2596-1934
929
B az. J. o Bus., Cu i iba, . 3, n. 1, p. 921-937 jan. /ma . 2021
DNP(

), is de e mined by he amoun o lub ica ing oils pu on he ma ke (LO). The e o e, he
equilib ium condi ion in he ma ke is,
1[ (1 )]
* * *
au s RMS
SP


+=
(11)
I
=()au S P
is a linea unc ion o he p ice, om equa ion (11) i can be ob ained ha
*d d

=
. Equa ion (11) inde e minacy esol es i he egula o se s *. The ma ginal incidence o
* on Ps and Pd is p esen ed, espec i ely, in equa ions (12) and (13).
1d
si
ds
E
dP
d E E
=−
(12)
1s
di
ds
E
dP
d E E
=−
(13)
Whe e i cons i u es he ini ial sha e o egene a ed oils in he consump ion o i s e ining
lub ican s.
Finally, he MPC o his policy is ha o a subsidy,
*

,
*
is
RMS s
d
E
CPM dP
E
=
(14)
The e o e, he compa ison be ween he MPC o a subsidy and an RMS, applied h ough an
NPS, is equi alen o compa ing a subsidy equal o he pe mi p ice,

, and a subsidy equal o
*

. Being
*i
less han 1, he MPC o an RMS, applied using an SPN, is lowe han ha o a subsidy.
As a esul , EPR is a mo e e icien policy han a subsidy o p omo e he collec ion and egene a ion
o was e oils.
4 ESTIMATING A SUPPLY AND DEMAND FUNCTION FOR WASTE OILS INTENDED
FOR REGENERATION
An empi ical analysis o he egene a ed oil ma ke has p e iously been ca ied ou (A ne
e al., 2003) by es ima ing a supply and demand unc ion, using O dina y Leas Squa es (OLS). Tha
wo k go he supply elas ici y o egene a ed oils o 1.33 and he demand elas ici y o egene a ed
oils o 0.39. In u n, he ma ke o was e oils has been cha ac e ized (A ne e al., 2006a) h ough
a supply unc ion o was e oils, de ined as collec ed was e oils, and a demand unc ion ega ding
he main alo iza ion ope a ions o was e oils ( egene a ion and combus ion). Un il 2000, was e oils
we e mainly in ended o uel, wi h a di ec ela ionship be ween he p ice o uel and he p ice o
was e oils. Consequen ly, he ma ke es ima e o was e oils was made using h ee-s age OLS
B azilian Jou nals o Business
ISSN: 2596-1934
936
B az. J. o Bus., Cu i iba, . 3, n. 1, p. 921-937 jan. /ma . 2021
Fulle on, D.; Wu, W. (1998). Policies o g een design. Jou nal o En i onmen al Economics and
Managemen , 36, 131-148. h ps://doi.o g/10.1006/jeem.1998.1044.
Gómez-Miñana, J.A. (1993). Used oils. Who's o blame o hem bu ning. Re . Téc.
En i onmen ,34, 17–22.
Jenkins, R.R. (1993). The Economics o Solid Was e Reduc ion. The Impac o Use Fees. England:
Edwa d Elga .
Llobe Díaz, L. (1995). Towa ds a global managemen sys em. In CIMAT (ed.): I In e na ional
Con e ence on Was e Managemen RESIDUA 95. Se ille.
MacKinnon, J. G. (1996). Nume ical dis ibu ion unc ions o uni oo and coin eg a ion es s.
Jou nal o Applied Econome ics, 11, 601–618.
Miedema, A.K. (1983). Fundamen al economics compa isons o solid was e policy op ions.
Resou ces and Ene gy, 5, 21-43. h ps://doi.o g/10.1016/0165-0572(83)90016-6.
Minis y o he En i onmen (2006). En i onmen in Spain 2005. Technical Gene al Sec e a ia .
h p://www.mag ama.gob.es/es/es adis ica/ emas/es adis icas-ambien ales/memo ia-2005.aspx
[Las Accessed: Oc obe 2016].
Ng, S. y Pe on, P. (2001). Lag leng h selec ion and he cons uc ion o uni oo es s wi h good
size and powe . Econome ica, 69, 1519-1554. h ps://doi.o g/10.1111/1468-0262.00256.
Palme , K.; Sigman, H.; Walls. M.; Ha ison, K. y Pulle , S. (1995). Cos o Reducing Solid Was e:
Compa ing Deposi -Re unds, Ad ance Disposal Fees, Recycling Subsidies, and Recycling Ra e
S anda ds. Discussion Pape , Washing on, DC: Resou ces o he Fu u e.
Palme , K.; Sigman, H.; Walls. M. (1997). The cos o educing municipal solid was e. Jou nal o
En i onmen al Economics and Managemen , 33, 128-150.
h ps://doi.o g/10.1006/jeem.1997.0986.
Palme , K.; Walls, M. (1994). Ma e ials Use and Solid Was e Disposal: An E alua ion o Policies,
Discussion Pape , Washing on, DC: Resou ces o he Fu u e.
Palme , K.; Walls, M. (1997). Op imal policies o solid was e disposal. Taxes, subsidies and
s anda ds. Jou nal o Public Economics, 65, 193-205. h ps://doi.o g/10.1016/S0047-
27279700028-5.
Palme , K.; Walls, M. (1999). Ex ended P oduc Responsibili y: An Economic Assessmen o
Al e na i e Policies. Discussion Pape , Washing on, DC: Resou ces o he Fu u e.
Ramsden, D.P. (1995). Used oil ecycling - Quali y again. R’95 Reco e y Recycling Re-In eg a ion
In e na ional Cong ess. UK.
SIGAUS (2010). Ac i i y Repo 2009. h p://www.sigaus.es [Las Accessed: Ma ch 2017].
SIGAUS (2016a). Repo o public adminis a ions 2015. Execu i e Summa y.
h p://www.sigaus.es [Las Accessed: Ma ch 2017].

B azilian Jou nals o Business
ISSN: 2596-1934
937
B az. J. o Bus., Cu i iba, . 3, n. 1, p. 921-937 jan. /ma . 2021
SIGAUS (2016b). New unding sys em 2016, News, No. 22. h p://www.sigaus.es [Las Accessed:
Ma ch 2017].
SIGAUS (2020). Ac i i y Repo 2019. Execu i e Summa y.
ResumenEjecu i o_2019_DEF_unaPagina_2 (1).pd [Las Accessed: Janua y 2021].
Sigman, H. (1995). A compa ison o public policies o lead ecycling. Rand Jou nal o Economics,
26, 452-478. h ps://doi.o g/10.2307/2555998.
Walls, M. (2003). The Role o Economics in Ex ended P oduc Responsibili y: Making Policy
Choices and Se ing Policy Goals. Discussion Pape , Washing on, DC: Resou ces o he Fu u e.
Walls, M.; Palme , K. (2001). Ups eam Pollu ion, Downs eam Was e Disposal, and he Design o
Comp ehensi e En i onmen al Policies. Jou nal o En i onmen al Economics and Managemen , 26 (1), 94-
108. h ps://doi.o g/10.1006/jeem.2000.1135.