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The Value of Remanufactured Engines: Life‐Cycle Environmental and Economic Perspectives

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  • Vanessa M. Smith
  • Gregory A. Keoleian

Abstract

Remanufacturing restores used automotive engines to like‐new condition, providing engines that are functionally equivalent to a new engine at much lower environmental and economic costs than the manufacture of a new engine. A life‐cycle assessment (LCA) model was developed to investigate the energy savings and pollution prevention that are achieved in the United States through remanufacturing a midsized automotive gasoline engine compared to an original equipment manufacturer manufacturing a new one. A typical full‐service machine shop, which is representative of 55% of the engine remanufacturers in the United States, was inventoried, and three scenarios for part replacement were analyzed. The life‐cycle model showed that the remanufactured engine could be produced with 68% to 83% less energy and 73% to 87% fewer carbon dioxide emissions. The life‐cycle model showed significant savings for other air emissions as well, with 48% to 88% carbon monoxide (CO) reductions, 72% to 85% nitrogen oxide (NOx) reductions, 71% to 84% sulfur oxide (SOx) reductions, and 50% to 61% nonmethane hydrocarbon reductions. Raw material consumption was reduced by 26% to 90%, and solid waste generation was reduced by 65% to 88%. The comparison of environmental burdens is accompanied by an economic survey of suppliers of new and remanufactured automotive engines showing a price difference for the consumer of between 30% and 53% for the remanufactured engine, with the greatest savings realized when the remanufactured engine is purchased directly from the remanufacturer.

Suggested Citation

  • Vanessa M. Smith & Gregory A. Keoleian, 2004. "The Value of Remanufactured Engines: Life‐Cycle Environmental and Economic Perspectives," Journal of Industrial Ecology, Yale University, vol. 8(1‐2), pages 193-221, January.
  • Handle: RePEc:bla:inecol:v:8:y:2004:i:1-2:p:193-221
    DOI: 10.1162/1088198041269463
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    Cited by:

    1. Meng, Kai & Lou, Peihuang & Peng, Xianghui & Prybutok, Victor, 2017. "Multi-objective optimization decision-making of quality dependent product recovery for sustainability," International Journal of Production Economics, Elsevier, vol. 188(C), pages 72-85.
    2. Diener, Derek L. & Tillman, Anne-Marie, 2015. "Component end-of-life management: Exploring opportunities and related benefits of remanufacturing and functional recycling," Resources, Conservation & Recycling, Elsevier, vol. 102(C), pages 80-93.
    3. Hao, Han & Qiao, Qinyu & Liu, Zongwei & Zhao, Fuquan, 2017. "Impact of recycling on energy consumption and greenhouse gas emissions from electric vehicle production: The China 2025 case," Resources, Conservation & Recycling, Elsevier, vol. 122(C), pages 114-125.
    4. Meiling He & Tianhe Lin & Xiaohui Wu & Jianqiang Luo & Yongtao Peng, 2020. "A Systematic Literature Review of Reverse Logistics of End-of-Life Vehicles: Bibliometric Analysis and Research Trend," Energies, MDPI, vol. 13(21), pages 1-22, October.
    5. Laura C. Aguilar Esteva & Akshat Kasliwal & Michael S. Kinzler & Hyung Chul Kim & Gregory A. Keoleian, 2021. "Circular economy framework for automobiles: Closing energy and material loops," Journal of Industrial Ecology, Yale University, vol. 25(4), pages 877-889, August.
    6. Hazen, Benjamin T. & Overstreet, Robert E. & Jones-Farmer, L. Allison & Field, Hubert S., 2012. "The role of ambiguity tolerance in consumer perception of remanufactured products," International Journal of Production Economics, Elsevier, vol. 135(2), pages 781-790.
    7. Wei He & Lan Liang & Kai Wang, 2020. "Economic and Environmental Implications of Quality Choice under Remanufacturing Outsourcing," Sustainability, MDPI, vol. 12(3), pages 1-18, January.
    8. Erwin M. Schau & Marzia Traverso & Annekatrin Lehmann & Matthias Finkbeiner, 2011. "Life Cycle Costing in Sustainability Assessment—A Case Study of Remanufactured Alternators," Sustainability, MDPI, vol. 3(11), pages 1-21, November.
    9. Diener, Derek L. & Tillman, Anne-Marie, 2016. "Scrapping steel components for recycling—Isn’t that good enough? Seeking improvements in automotive component end-of-life," Resources, Conservation & Recycling, Elsevier, vol. 110(C), pages 48-60.
    10. Yadong Shu & Ying Dai & Zujun Ma, 2019. "Pricing Decisions in Closed-Loop Supply Chains with Peer-Induced Fairness Concerns," Sustainability, MDPI, vol. 11(18), pages 1-19, September.

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