Does ownership of an end‐of‐life product affect design for environment?

Eiji B. Hosoda

Metroeconomica, 2020, vol. 71, issue 1, 57-87

Abstract: Circulative use of resources is a crucial concept for a modern capitalist economy. Faced with peaking‐out of material resources and shortage of landfill capacity in the long run, human beings are required to promote efficient reuse and recycling of end‐of‐life products (ELPs). One of the methods to advance efficient reuse and recycling is rental or lease of products. Product service is also a similar idea. All these imply, in some sense, a change of ownership of a product and an ELP; ownership of an ELP as well as a product belongs to producers instead of households. It is often said that such a change of ownership promotes design for environment (DfE) or eco‐design, contributing to circulative use of resources. This paper examines whether ownership of an ELP affects DfE by means of à la Sraffian type of equilibrium model. I show that there are two routes to DfE, namely via a reduction of the amount of an ELP and enhancement of quality of a secondary material. I also show that DfE effects do not appear under certain conditions, even if the ownership of an ELP is transferred to producers.

Date: 2020
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