Improving recycling: How far should we go?
(2021) , 27 pages
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- Abstract
- We analyze the strategic interaction between competing firms that source their inputs from either primary or recycled material. Because the manufacturers’ primary production today serves as input for the recyclers’ production tomorrow, manufacturers can limit the recyclers’ scale of operation by reducing their output. Improving the recycling process generates then two opposite effects: it reduces primary production tomorrow by exposing manufacturers to stronger competition from recyclers, but it also lowers the manufacturers’ incentives to reduce their primary production today. Making the recycling process too efficient might then be counterproductive for the environment. This intuition equally applies to remanufacturing.
- Affiliations
Citations
Belleflamme, P., & Ha, T. H. (2021). Improving recycling: How far should we go? (LIDAM Discussion Paper CORE 2021/09). https://hdl.handle.net/2078.5/107600