The effectiveness of a take-back policy to avoid the non-optimal exclusion of remanufacturing
Editorial: Servicio de Publicaciones ; Universidad de Almería
ISBN: 84-8240-795-3
Año de publicación: 2006
Páginas: 96
Congreso: Encuentro de Economía Pública (13. 2006. Almeria)
Tipo: Aportación congreso
Resumen
As opposed to recycling, remanufacturing keeps as much value added as possible in a discarded product, and avoids much of the pollution caused by manufacturing a new good. However, remanufacturing is hampered by technological barriers caused by original equipment manufacturers (OEMs). Hence, incentives for OEMs to internalize all the effects of their technological choices on remanufacturing should be created, such as a take-back policy, that is, making OEMs responsible for the disposal of their products after consumers discard them. If made responsible for product disposal, OEMs with market power exclude remanufactures from the market only when it is socially optimal, but they never remanufacture in optimal amounts.