EconPapers    
Economics at your fingertips  
 

Remanufacturing

Sophie Bernard ()

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This paper presents a theoretical model of remanufacturing where a duopoly of original manufacturers produces a component of a final good. The specific component that needs to be replaced during the lifetime of the final good creates a secondary market where independent remanufacturers enter the competition. An environmental regulation imposing a minimum level of remanufacturability is also introduced. The main results establish that, while collusion of the firms on the level of remanufacturability increases both profit and consumer surplus, a social planner could use collusion as a substitute for an environmental regulation. However, if an environmental regulation is to be implemented, collusion should be repressed since competition supports the public intervention better. Under certain circumstances, the environmental regulation can increase both profit and consumer surplus. Part of this result supports the Porter Hypothesis, which stipulates that industries respecting environmental regulations can see their profits increase.

Keywords: remanufacturing; competition; environmental regulation; porter hypothesis (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-com, nep-env and nep-reg
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00638178
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Published in Journal of Environmental Economics and Management, Elsevier, 2011, 62, pp.337-351. ⟨10.1016/j.jeem.2011.05.005⟩

Downloads: (external link)
https://hal.archives-ouvertes.fr/hal-00638178/document (application/pdf)

Related works:
Journal Article: Remanufacturing (2011) Downloads
Working Paper: Remanufacturing (2011) Downloads
Working Paper: Remanufacturing (2011) Downloads
Working Paper: Remanufacturing (2011) Downloads
Working Paper: Remanufacturing (2011) Downloads
Working Paper: Remanufacturing (2011) Downloads
Working Paper: Remanufacturing (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:hal-00638178

DOI: 10.1016/j.jeem.2011.05.005

Access Statistics for this paper

More papers in Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2020-08-29
Handle: RePEc:hal:cesptp:hal-00638178