Eco-efficiency, asset recovery and remanufacturing

Robert Ayres, Geraldo Ferrer and Tania Van Leynseele

European Management Journal, 1997, vol. 15, issue 5, 557-574

Abstract: In this article we consider the underlying imperatives driving the trend toward eco-efficiency and, especially, asset recovery, at the firm level. We show how the enormous potential for adding value while reducing material inputs can be realized in almost every sector of the economy. Many of these gains can be obtained by 'internalizing' the product. In many cases there is a large scope for 'double dividends', by which we mean increased profits for the firm combined with environmental improvement. We also discuss the role of government regulation as a driver of change. Finally, we review a number of specific cases from (mostly) European firms, with emphasis on the potential for internalizing the product by recovery, remanufacturing and materials recycling. We conclude with a discussion of the economics, the regulatory environment and the organizational and management aspects of the problem.

Date: 1997
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