A mechanism to promote product recovery and environmental performance

Mostafa Pazoki and Georges Zaccour

European Journal of Operational Research, 2019, vol. 274, issue 2, 601-614

Abstract: To address the problem of the effectiveness and efficiency of environmental protection regulations, we propose a general functional form for regulations to provide a decision support system for social planners designing new regulations. Thanks to the proposed functional form, we are able to compare a variety of different regulations within a single framework. It is shown that how the values of subsidies and penalties in several environmental regulations should be set to minimize the environmental impact of production or to maximize product recovery. Further, this paper presents a set of guidelines on how to modify target rates and incentives to improve certain environmental goals. Finally, it is proved that the amount of past production (available product for collection and/or remanufacturing, which is also referred to as supply constraint) modifies the impact of target rates and incentives on environmental performance.

Keywords: Manufacturing; Collection; Environmental protection regulations; Regulation design (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (15)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ejores:v:274:y:2019:i:2:p:601-614

DOI: 10.1016/j.ejor.2018.10.029

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