The Paper Recycling Market and Consumer Behavior in Japan

Abstract

For the paper recycling, various new technologies have been developed and some recycling ordinances were put into effect. These environmental countermeasures have increased the amount of waste paper collection, but have not created satisfactory demands for these collected paper and the recycled products. This study reviews the problems hindering the paper recycling and the evolution of the paper recycling market in Japan and examines the toilet roll market where recycled products compete with virgin products for the market share.The toilet roll market in Japan had been mostly occupied by recycled products, however, share of virgin products has recently increased up to 33% in total, though they are more expensive than the recycled products. The economic analysis for this market indicates that two effects are responsible for increased share of the virgin products; the first is the consumer's income effects, and the second is drop of relative price of the virgin products due to changing the packaging forms in 1990. If decrease of relative price of the virgin products continues, the recycled products would lose market further.