Green cutlery loses money "Our environmental protection products are destined to be unsold from the beginning. Under a huge loss, we have to find another way out." Looking at more than 30,000 square meters of factories outside the office, Foshan Oasis paper packaging Chairman Liang Miansen of the Products Co., Ltd. told reporters heavily. He now holds a stake in Guangdong Lvzhou Paper Molded Packaging Products Co., Ltd., which is controlled by Guangdong Zhenneng Group Co., Ltd., with the entire “Foshan Oasisâ€.
Since 1995, when the country declared war on “white pollution†and used paper products instead of foamed plastic Tableware, more than 100 companies have invested human and financial resources in the research and development of environmentally friendly tableware. Foshan Oasis Corporation, which specializes in the production and sale of disposable pulp molded products, was established in 1998 with a total investment of 50 million yuan in the first phase, an annual production capacity of 128 million, and a daily output of 400,000. However, in the past few years, foamed tableware is still in full swing. In the “white ocean†of white, the first gold diggers of environmental protection tableware have either fallen to the ground or are only left to struggle. In comparison, "Foshan Oasis" is one of the longer-term supporters.
In terms of production costs, the disadvantages of environmental protection tableware competition are quite obvious. The price of a ton of plastic and a ton of pulp plates is 12,000 yuan and 13,000 yuan, respectively, but after the product is made, the price differs by about 5 times. The reason for this is the availability of materials, which are several times more expensive. In the production process, the former technology has matured, and the latter has to go through six processes such as beating, forming, disinfecting and packaging, and the cost will remain high.
“The environmental protection tableware industry is a meager profit industry, and economies of scale will be the killer we use.†Guangdong's “Oasis†will build a new production line based on the original “Oasis of Foshanâ€. The first step is to form an annual production capacity of 300 million standard parts. The annual sales income is 73 million yuan. The demand for disposable tableware in the Chinese market is more than 10 billion yuan per year. Another person in charge of Shanneng Group disclosed his worries: "Foamware cutlery is not banned from the source of production on a day, and the development of environmentally friendly alternatives will not scale on a day."
The foaming tableware company does not understand that "My product does not degrade and it does not degrade. Why can it be used? I can't use it?" Shenzhen Defengsheng Co., Ltd. Nissan disposable foam plastic tableware 2 million, the total investment is 3500 Million yuan, last year sales were 44 million yuan. However, contrary to the power of the ban, the retailer Wal-Mart, which has cooperated with Defengsheng for five years, has recently switched to other products. This one alone will lose hundreds of thousands of yuan each month. Its general manager, Ms. Yao Pei Pei, noticed that the products that replace them are CT products (combined environmental protection products of polypropylene and talcum powder). At present, CT products have not been included in the list of tests for the technical conditions of disposable disposable biodegradable lunch boxes. De Fengsheng and 13 other foaming tableware manufacturers even jointly rapped their remarks and issued several large advertisements to express their doubts about the ban.
In November 1999, the State Bureau of Quality and Technical Supervision issued a national standard for the general technical conditions of disposable degradable tableware. At present, many companies have reached the standard, but the market has not yet found non-chemical materials and performance and health indicators. It is also a relatively high environmental protection tableware; many products are merely mixed with modified polypropylene in polypropylene, and cannot be completely degraded.
In addition, the general cost of substitutes is too high and the number of production is limited. Whether they can meet the market demand or whether the market accepts them is unknown. “The real environmental protection is to encourage less use and reuse instead of alternative use.†Ms. Yao cited Shanghai as an example. Shanghai’s management principle is “source control, recycling, gradual ban, and encourage substitutionâ€. The factory pays a collection and disposal fee every month according to the production volume or sales volume to purchase the “recycling markâ€. This mark is attached to the foamed tableware as if it had a “growth permitâ€. The government uses the charges for recovery, transportation, cleaning, reuse, and other aftermath tasks. At present, there are 3.36 million disposable styrofoam utensils sold every day in Shenzhen. Calculating this, Shenzhen needs about 100,000 yuan for recycling every day. Ms. Yao thinks that this amount should be sufficient for recycling, and companies are willing to bear this. Expenses, but not their doors.
Inseparable from policies and consumers Later, a fierce debate in the capital escalated Yao's “bounceâ€. A foam tableware pollution treatment seminar was held in Beijing. However, the meeting seemed to have shifted from the beginning. The theme of the entire conference became a debate on whether or not the foamed tableware had any toxicity. Some plastic experts and the Beijing Consumers Association insisted on their efforts to win the battle.
Xia Qing, vice president of the Chinese Academy of Environmental Sciences at the seminar, broke the mystery of the poisonous and nontoxic dispute. He said that it was precisely because the State Economic and Trade Commission's decision to ban the use of foaming plastic tableware at the end of 2000 had not been implemented. This led many organizations and companies to believe that policies may be loosened, or they may open up in some areas. He believes that relevant departments should make strategic decisions as soon as possible.
A person in charge of the State Economic and Trade Commission stated that relevant departments are formulating plans to implement a total ban on the production and sale of disposable foam tableware. However, the responsible person emphasized that, on the surface, the strict enforcement of Order No. 6 is a good opportunity for the development of new environmentally-friendly tableware, but the new environmentally-friendly tableware has not been able to keep up due to its own technical support, the cost is high, and the market share is now Not very good. Therefore, manufacturers of new environmentally-friendly tableware cannot rely too much on government policies, because if these new types of companies cannot meet consumer demands in terms of quality, price, etc., it is difficult for the country to have further policy support.
Case perception 1:
1. The “invisible hand†of the market is beneficial to the allocation of social resources as a whole, but it is not a panacea, especially when there is a negative external effect of pollution and a positive external effect of environmental protection. It is a malfunction. In the above case, the paper environmental protection products that replaced foam plastic tableware were destined to be sold from the beginning.
2. According to the principles of economics, the government can sometimes improve market outcomes. When markets cannot effectively allocate resources, government policies can sometimes potentially improve market allocation and can even play the best role (when external private solutions are ineffective).
3. Because of the existence of external marginal costs, the negative externalities make the marginal cost of society greater than the private marginal cost, which is reflected by the fact that the market output is greater than the social hope; due to the existence of external marginal benefits, the positive externality makes the private marginal benefit less than the social marginalization. Benefits are expressed as market output is less than the social hope.
4, in order to effectively solve external problems, it is necessary to internalize externalities. In the above case, the government can adopt the following two methods. The first is regulation. The government can solve external problems by specifying or prohibiting certain behaviors. For example, a person in charge of the State Economic and Trade Commission said in a telephone interview with reporters that “the relevant departments are formulating plans to implement a total ban on the production and sale of disposable foam tablewareâ€, which is a form of control. The second is Pigouvian taxes (taxes are imposed on polluters according to the hazards caused by the pollution, the gap between private costs and social costs is compensated in the form of taxes, and the cost of pollution is added to the price of the product) and subsidies. The government's response to externalities may also be a non-regulatory act, and market-based policies provide individuals with incentives that meet social efficiency. In the above case, the producer of foamed cutlery can be subject to a relatively high Pigovian tax, and financial subsidies or tax exemptions are provided for manufacturers of paper-based environmentally friendly tableware. It should be said that the second way is better than the first way.
two:
1. The above cases mainly reflect the external effects. The foamed plastic tableware production has brought about pollution to the society. The marginal cost of the individual is less than the social marginal cost and has a significant negative external effect. The production of environmental protection tableware has marginal cost of the individual greater than the social marginal cost, and has a positive external effect. The behavior with negative external effects is often over-supply, and positive external effect behavior is under-supply.
2. The shortage of useful administrative output. The reason for the existence of administrative agencies is that there is a demand in the social sector for the output provided by the agency. The executive branch often cannot effectively meet the social or community needs of administrative output or services. In the above case, the State Economic and Trade Commission’s “ban on whitening†failed to promptly introduce white plastic foods such as foamed plastics to have a larger living space, and environmental protection tableware was strongly challenged, reflecting the problem of insufficient administrative output. .
3. The price elasticity of the market demand for green environmental protection tableware. As there is a clear alternative product (white cutlery), green tableware has a price elasticity, and the price has the most prominent impact on its market. In the presence of white cutlery, the survival of green tableware is to reduce the production cost, with a low price competition.
4, the public awareness of environmental protection issues. Cultivating the public’s environmental awareness will help reduce the use of white cutlery and increase the use of environmentally friendly cutlery. Cultivating the public's awareness of environmental protection should also be a measure for the government to solve external effects. While levying the Pigeon tax on white tableware companies or subsidizing green tableware companies, the education on environmental awareness is strengthened.
three:
This incident is consistent with the nature of the government's "three bans" incident in Xi'an, Shaanxi Province. The Xi'an government banned firecrackers, prohibited the use of disposable wooden chopsticks, and prohibited motorcycles on the road in the form of a government decree. The purpose of its policy is to maintain sustainable development and protect the environment. However, the implementation of the policy has never been implemented, and the police faced a flock. The motorcycle can only be perfunctory with the "law does not condemn the public."
Good laws and good policies are not just the right starting point. They should create an environment. They need to be widely publicized and promoted. They also need assurances to be enforced, so that law-abiding people feel freedom and penalties are imposed on offenders. For policy makers, the formulation, implementation, and implementation of policies should be a system (the division of labor among law enforcement agencies is too detailed, and each one is also a cause) and should be considered comprehensively to achieve the proper role and maintain the government's credit.
four:
1, rationalize the relationship between the government and the market. The government can not ignore the green products in the market competition is at a disadvantage and even dies, the government should play an active government-oriented role in internalizing the externalities. At the same time, as a manufacturer of green tableware can not rely too much on government policies, it is necessary to quickly seize the technical problem, expand the scale of production (can further carry out joint or merger of enterprises), reduce product costs, and occupy the market as soon as possible.
2. Law enforcement agencies must strictly enforce the law and increase enforcement efforts.
3. Accelerate the transformation of scientific and technological achievements. The technology transfer fee is too high, and manufacturers are reluctant to invest; the transfer fee is too low, and the patentee is not willing to do so – so that women are also married. If the government increases its efforts to no longer allow the use of products that cannot be degraded, then the new products that can be degraded will have a good market. Even if the cost is high, the manufacturers are willing to put into production, and the patentee is willing to transfer and make the knowledge productive.
Since 1995, when the country declared war on “white pollution†and used paper products instead of foamed plastic Tableware, more than 100 companies have invested human and financial resources in the research and development of environmentally friendly tableware. Foshan Oasis Corporation, which specializes in the production and sale of disposable pulp molded products, was established in 1998 with a total investment of 50 million yuan in the first phase, an annual production capacity of 128 million, and a daily output of 400,000. However, in the past few years, foamed tableware is still in full swing. In the “white ocean†of white, the first gold diggers of environmental protection tableware have either fallen to the ground or are only left to struggle. In comparison, "Foshan Oasis" is one of the longer-term supporters.
In terms of production costs, the disadvantages of environmental protection tableware competition are quite obvious. The price of a ton of plastic and a ton of pulp plates is 12,000 yuan and 13,000 yuan, respectively, but after the product is made, the price differs by about 5 times. The reason for this is the availability of materials, which are several times more expensive. In the production process, the former technology has matured, and the latter has to go through six processes such as beating, forming, disinfecting and packaging, and the cost will remain high.
“The environmental protection tableware industry is a meager profit industry, and economies of scale will be the killer we use.†Guangdong's “Oasis†will build a new production line based on the original “Oasis of Foshanâ€. The first step is to form an annual production capacity of 300 million standard parts. The annual sales income is 73 million yuan. The demand for disposable tableware in the Chinese market is more than 10 billion yuan per year. Another person in charge of Shanneng Group disclosed his worries: "Foamware cutlery is not banned from the source of production on a day, and the development of environmentally friendly alternatives will not scale on a day."
The foaming tableware company does not understand that "My product does not degrade and it does not degrade. Why can it be used? I can't use it?" Shenzhen Defengsheng Co., Ltd. Nissan disposable foam plastic tableware 2 million, the total investment is 3500 Million yuan, last year sales were 44 million yuan. However, contrary to the power of the ban, the retailer Wal-Mart, which has cooperated with Defengsheng for five years, has recently switched to other products. This one alone will lose hundreds of thousands of yuan each month. Its general manager, Ms. Yao Pei Pei, noticed that the products that replace them are CT products (combined environmental protection products of polypropylene and talcum powder). At present, CT products have not been included in the list of tests for the technical conditions of disposable disposable biodegradable lunch boxes. De Fengsheng and 13 other foaming tableware manufacturers even jointly rapped their remarks and issued several large advertisements to express their doubts about the ban.
In November 1999, the State Bureau of Quality and Technical Supervision issued a national standard for the general technical conditions of disposable degradable tableware. At present, many companies have reached the standard, but the market has not yet found non-chemical materials and performance and health indicators. It is also a relatively high environmental protection tableware; many products are merely mixed with modified polypropylene in polypropylene, and cannot be completely degraded.
In addition, the general cost of substitutes is too high and the number of production is limited. Whether they can meet the market demand or whether the market accepts them is unknown. “The real environmental protection is to encourage less use and reuse instead of alternative use.†Ms. Yao cited Shanghai as an example. Shanghai’s management principle is “source control, recycling, gradual ban, and encourage substitutionâ€. The factory pays a collection and disposal fee every month according to the production volume or sales volume to purchase the “recycling markâ€. This mark is attached to the foamed tableware as if it had a “growth permitâ€. The government uses the charges for recovery, transportation, cleaning, reuse, and other aftermath tasks. At present, there are 3.36 million disposable styrofoam utensils sold every day in Shenzhen. Calculating this, Shenzhen needs about 100,000 yuan for recycling every day. Ms. Yao thinks that this amount should be sufficient for recycling, and companies are willing to bear this. Expenses, but not their doors.
Inseparable from policies and consumers Later, a fierce debate in the capital escalated Yao's “bounceâ€. A foam tableware pollution treatment seminar was held in Beijing. However, the meeting seemed to have shifted from the beginning. The theme of the entire conference became a debate on whether or not the foamed tableware had any toxicity. Some plastic experts and the Beijing Consumers Association insisted on their efforts to win the battle.
Xia Qing, vice president of the Chinese Academy of Environmental Sciences at the seminar, broke the mystery of the poisonous and nontoxic dispute. He said that it was precisely because the State Economic and Trade Commission's decision to ban the use of foaming plastic tableware at the end of 2000 had not been implemented. This led many organizations and companies to believe that policies may be loosened, or they may open up in some areas. He believes that relevant departments should make strategic decisions as soon as possible.
A person in charge of the State Economic and Trade Commission stated that relevant departments are formulating plans to implement a total ban on the production and sale of disposable foam tableware. However, the responsible person emphasized that, on the surface, the strict enforcement of Order No. 6 is a good opportunity for the development of new environmentally-friendly tableware, but the new environmentally-friendly tableware has not been able to keep up due to its own technical support, the cost is high, and the market share is now Not very good. Therefore, manufacturers of new environmentally-friendly tableware cannot rely too much on government policies, because if these new types of companies cannot meet consumer demands in terms of quality, price, etc., it is difficult for the country to have further policy support.
Case perception 1:
1. The “invisible hand†of the market is beneficial to the allocation of social resources as a whole, but it is not a panacea, especially when there is a negative external effect of pollution and a positive external effect of environmental protection. It is a malfunction. In the above case, the paper environmental protection products that replaced foam plastic tableware were destined to be sold from the beginning.
2. According to the principles of economics, the government can sometimes improve market outcomes. When markets cannot effectively allocate resources, government policies can sometimes potentially improve market allocation and can even play the best role (when external private solutions are ineffective).
3. Because of the existence of external marginal costs, the negative externalities make the marginal cost of society greater than the private marginal cost, which is reflected by the fact that the market output is greater than the social hope; due to the existence of external marginal benefits, the positive externality makes the private marginal benefit less than the social marginalization. Benefits are expressed as market output is less than the social hope.
4, in order to effectively solve external problems, it is necessary to internalize externalities. In the above case, the government can adopt the following two methods. The first is regulation. The government can solve external problems by specifying or prohibiting certain behaviors. For example, a person in charge of the State Economic and Trade Commission said in a telephone interview with reporters that “the relevant departments are formulating plans to implement a total ban on the production and sale of disposable foam tablewareâ€, which is a form of control. The second is Pigouvian taxes (taxes are imposed on polluters according to the hazards caused by the pollution, the gap between private costs and social costs is compensated in the form of taxes, and the cost of pollution is added to the price of the product) and subsidies. The government's response to externalities may also be a non-regulatory act, and market-based policies provide individuals with incentives that meet social efficiency. In the above case, the producer of foamed cutlery can be subject to a relatively high Pigovian tax, and financial subsidies or tax exemptions are provided for manufacturers of paper-based environmentally friendly tableware. It should be said that the second way is better than the first way.
two:
1. The above cases mainly reflect the external effects. The foamed plastic tableware production has brought about pollution to the society. The marginal cost of the individual is less than the social marginal cost and has a significant negative external effect. The production of environmental protection tableware has marginal cost of the individual greater than the social marginal cost, and has a positive external effect. The behavior with negative external effects is often over-supply, and positive external effect behavior is under-supply.
2. The shortage of useful administrative output. The reason for the existence of administrative agencies is that there is a demand in the social sector for the output provided by the agency. The executive branch often cannot effectively meet the social or community needs of administrative output or services. In the above case, the State Economic and Trade Commission’s “ban on whitening†failed to promptly introduce white plastic foods such as foamed plastics to have a larger living space, and environmental protection tableware was strongly challenged, reflecting the problem of insufficient administrative output. .
3. The price elasticity of the market demand for green environmental protection tableware. As there is a clear alternative product (white cutlery), green tableware has a price elasticity, and the price has the most prominent impact on its market. In the presence of white cutlery, the survival of green tableware is to reduce the production cost, with a low price competition.
4, the public awareness of environmental protection issues. Cultivating the public’s environmental awareness will help reduce the use of white cutlery and increase the use of environmentally friendly cutlery. Cultivating the public's awareness of environmental protection should also be a measure for the government to solve external effects. While levying the Pigeon tax on white tableware companies or subsidizing green tableware companies, the education on environmental awareness is strengthened.
three:
This incident is consistent with the nature of the government's "three bans" incident in Xi'an, Shaanxi Province. The Xi'an government banned firecrackers, prohibited the use of disposable wooden chopsticks, and prohibited motorcycles on the road in the form of a government decree. The purpose of its policy is to maintain sustainable development and protect the environment. However, the implementation of the policy has never been implemented, and the police faced a flock. The motorcycle can only be perfunctory with the "law does not condemn the public."
Good laws and good policies are not just the right starting point. They should create an environment. They need to be widely publicized and promoted. They also need assurances to be enforced, so that law-abiding people feel freedom and penalties are imposed on offenders. For policy makers, the formulation, implementation, and implementation of policies should be a system (the division of labor among law enforcement agencies is too detailed, and each one is also a cause) and should be considered comprehensively to achieve the proper role and maintain the government's credit.
four:
1, rationalize the relationship between the government and the market. The government can not ignore the green products in the market competition is at a disadvantage and even dies, the government should play an active government-oriented role in internalizing the externalities. At the same time, as a manufacturer of green tableware can not rely too much on government policies, it is necessary to quickly seize the technical problem, expand the scale of production (can further carry out joint or merger of enterprises), reduce product costs, and occupy the market as soon as possible.
2. Law enforcement agencies must strictly enforce the law and increase enforcement efforts.
3. Accelerate the transformation of scientific and technological achievements. The technology transfer fee is too high, and manufacturers are reluctant to invest; the transfer fee is too low, and the patentee is not willing to do so – so that women are also married. If the government increases its efforts to no longer allow the use of products that cannot be degraded, then the new products that can be degraded will have a good market. Even if the cost is high, the manufacturers are willing to put into production, and the patentee is willing to transfer and make the knowledge productive.
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