Remanufacturing

Sophie Bernard

No 1003E, Working Papers from University of Ottawa, Department of Economics

Abstract: Remanufacturing is a form of recycling where used durable goods are refurbished to a condition comparable to new products. With reduced energy and resource consumption, remanufactured goods are produced at a fraction of the original cost and with lower emissions of pollution. This paper presents a theoretical model of remanufacturing where a duopoly of original manufacturers produce a component of a final good. The component needing to be replaced creates an aftermarket. An environmental regulation assessing a minimum level of remanufacturability is also introduced. The main results indicate that a social planner could use collusion of the firms on the level of remanufacturability as a substitute for environmental regulation. However, if an environmental regulation is to be implemented, collusion should be repressed since competition supports the public intervention better. One of the results also coincides with the Porter Hypothesis.

Keywords: remanufacturing; competition; environmental regulation; Porter Hypothesis (search for similar items in EconPapers)
JEL-codes: H23 L10 L51 Q53 Q58 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2010
New Economics Papers: this item is included in nep-ene and nep-env
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Related works:
Journal Article: Remanufacturing (2011)
Working Paper: Remanufacturing (2011)
Working Paper: Remanufacturing (2011)
Working Paper: Remanufacturing (2011)
Working Paper: Remanufacturing (2011)
Working Paper: Remanufacturing (2011)
Working Paper: Remanufacturing (2011)
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