IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v218y2019icp228-244.html
   My bibliography  Save this article

On the joint dynamics of the economic and environmental performances for collective take-back systems

Author

Listed:
  • Chen, Wenyi
  • Kucukyazici, Beste
  • Saenz, Maria Jesus

Abstract

The aim of this paper is to help regulators develop efficient recovery targets, to deliver desirable economic and environmental outcomes for collective product take-back systems. Two environmental measures—waste generation and energy consumption—are utilized jointly to evaluate the environmental performance of the legislation, whereas economic surplus is used to indicate the economic outcome. We develop a bi-level multi-objective formulation to capture the dynamics between a regulator, a producer, consumers, and the environment. A case study based on BSH Bosch and Siemens Home Appliances and Germany's WEEE take-back scheme is used for deriving policy and managerial insights. We find that the optimal waste generation is robust among all the Pareto solutions in every tested scenarios, as long as recycling is cheaper than landfilling. Our findings also hint the potential benefits of using subsidiary tools, such as a landfill tax and an energy cap, to enhance the overall environmental performance of take-back legislation. From a methodology perspective, a unique feature of the paper is the use of a multi-objective framework for take-back legislation that enables us to characterize the Pareto frontier. Secondly, from the practical perspective, this paper can help regulators with a policy design decision support tool that gradually guides to the most preferable policy, balancing the trade-offs between the three objectives.

Suggested Citation

  • Chen, Wenyi & Kucukyazici, Beste & Saenz, Maria Jesus, 2019. "On the joint dynamics of the economic and environmental performances for collective take-back systems," International Journal of Production Economics, Elsevier, vol. 218(C), pages 228-244.
    • Handle: RePEc:eee:proeco:v:218:y:2019:i:c:p:228-244
    DOI: 10.1016/j.ijpe.2019.04.028
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527319301574
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2019.04.028?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Bovenberg, A Lans & Goulder, Lawrence H, 1996. "Optimal Environmental Taxation in the Presence of Other Taxes: General-Equilibrium Analyses," American Economic Review, American Economic Association, vol. 86(4), pages 985-1000, September.
    2. Jane J. Ye, 2011. "Necessary Optimality Conditions for Multiobjective Bilevel Programs," Mathematics of Operations Research, INFORMS, vol. 36(1), pages 165-184, February.
    3. Polotski, Vladimir & Kenne, Jean-Pierre & Gharbi, Ali, 2017. "Production and setup policy optimization for hybrid manufacturing–remanufacturing systems," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 322-333.
    4. Bovenberg, A.L. & Goulder, L.H., 1996. "Optimal environmental taxation in the presence of other taxes : General equilibrium analyses," Other publications TiSEM 5d4b7517-c5c8-4ef6-ab76-3, Tilburg University, School of Economics and Management.
    5. Luyi Gui & Atalay Atasu & Özlem Ergun & L. Beril Toktay, 2018. "Design Incentives Under Collective Extended Producer Responsibility: A Network Perspective," Management Science, INFORMS, vol. 64(11), pages 5083-5104, November.
    6. Bazan, Ehab & Jaber, Mohamad Y. & Zanoni, Simone, 2017. "Carbon emissions and energy effects on a two-level manufacturer-retailer closed-loop supply chain model with remanufacturing subject to different coordination mechanisms," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 394-408.
    7. Kadambala, Dinesh K. & Subramanian, Nachiappan & Tiwari, Manoj K. & Abdulrahman, Muhammad & Liu, Chang, 2017. "Closed loop supply chain networks: Designs for energy and time value efficiency," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 382-393.
    8. Kim, Hyung Chul & Keoleian, Gregory A. & Horie, Yuhta A., 2006. "Optimal household refrigerator replacement policy for life cycle energy, greenhouse gas emissions, and cost," Energy Policy, Elsevier, vol. 34(15), pages 2310-2323, October.
    9. Kovačić, Danijel & Usenik, Janez & Bogataj, Marija, 2017. "Optimal decisions on investments in Urban Energy Cogeneration plants – Extended MRP and fuzzy approach to the stochastic systems," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 583-595.
    10. Chen, Wenyi & Kucukyazici, Beste & Verter, Vedat & Jesús Sáenz, María, 2015. "Supply chain design for unlocking the value of remanufacturing under uncertainty," European Journal of Operational Research, Elsevier, vol. 247(3), pages 804-819.
    11. C. Kieren Mayers & Chris M. France & Sarah J. Cowell, 2005. "Extended Producer Responsibility for Waste Electronics: An Example of Printer Recycling in the United Kingdom," Journal of Industrial Ecology, Yale University, vol. 9(3), pages 169-189, July.
    12. Wang, Wenyuan & Wang, Yue & Mo, Daniel & Tseng, Mitchell M., 2017. "Managing component reuse in remanufacturing under product diffusion dynamics," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 551-560.
    13. Gökçe Esenduran & Eda Kemahlıoğlu-Ziya, 2015. "A Comparison of Product Take-Back Compliance Schemes," Production and Operations Management, Production and Operations Management Society, vol. 24(1), pages 71-88, January.
    14. Hariga, Moncer & As’ad, Rami & Khan, Zeinab, 2017. "Manufacturing-remanufacturing policies for a centralized two stage supply chain under consignment stock partnership," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 362-374.
    15. Jeihoonian, Mohammad & Kazemi Zanjani, Masoumeh & Gendreau, Michel, 2017. "Closed-loop supply chain network design under uncertain quality status: Case of durable products," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 470-486.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Huang, Yanting & Liang, Yuqing & Gong, Yeming & Yuan, Zhe, 2023. "Role of trust-building in online recycling platforms," International Journal of Production Economics, Elsevier, vol. 263(C).
    2. Wang, Haiyan & Masi, Donato & Dhamotharan, Lalitha & Day, Steven & Kumar, Ajay & Li, Tong & Singh, Gurmeet, 2022. "Unconventional path dependence: How adopting product take-back and recycling systems contributes to future eco-innovations," Journal of Business Research, Elsevier, vol. 142(C), pages 707-717.
    3. Navid Salmanzadeh-Meydani & S. M. T. Fatemi Ghomi & Seyedhamidreza Shahabi Haghighi & Kannan Govindan, 2023. "A multivariate quantitative approach for sustainability performance assessment: An upstream oil and gas company," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(3), pages 2777-2807, March.
    4. Liu, Zhi & Li, Kevin W. & Tang, Juan & Gong, Bengang & Huang, Jun, 2021. "Optimal operations of a closed-loop supply chain under a dual regulation," International Journal of Production Economics, Elsevier, vol. 233(C).
    5. Zhao, Senlin & You, Zhuangzhuang & Zhu, Qinghua, 2022. "Effects of asymmetric cost information on collection outsourcing of used products for remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 162(C).
    6. Luo, Li & Shan, Renbang & Xiang, Jie, 2024. "The government intervention effectiveness in promoting remanufacturing: Subsidy or remanufacturing target?," Socio-Economic Planning Sciences, Elsevier, vol. 92(C).
    7. Ma, Peng & Gong, Yeming & Mirchandani, Prakash, 2020. "Trade-in for remanufactured products: Pricing with double reference effects," International Journal of Production Economics, Elsevier, vol. 230(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Luttiely Santos Oliveira & Ricardo Luiz Machado, 2021. "Application of optimization methods in the closed-loop supply chain: a literature review," Journal of Combinatorial Optimization, Springer, vol. 41(2), pages 357-400, February.
    2. Schünemann, Johannes & Trimborn, Timo, 2023. "Boosting taxes for boasting about houses? Status concerns in the housing market," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 120-143.
    3. Frédéric Gonand, 2016. "The Carbon Tax, Ageing and Pension Deficits," Post-Print hal-01251698, HAL.
    4. Walls, Margaret & Hanson, Jean, 1999. "Distributional Aspects of an Environmental Tax Shift: The Case of Motor Vehicle Emissions Taxes," National Tax Journal, National Tax Association, vol. 52(n. 1), pages 53-65, March.
    5. Gaël Callonnec & Frédéric Reynès & Yasser Y. Tamsamani, 2012. "Une évaluation macroéconomique et sectorielle de la fiscalité carbone en France," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 121-154.
    6. Mehmet Talha Dulman & Surendra M. Gupta, 2018. "Evaluation of Maintenance and EOL Operation Performance of Sensor-Embedded Laptops," Logistics, MDPI, vol. 2(1), pages 1-22, January.
    7. van Kooten, G. Cornelis, 2004. "Economics of Forest and Agricultural Carbon Sinks," Working Papers 18160, University of Victoria, Resource Economics and Policy.
    8. Konan, Denise Eby & Maskus, Keith E., 2000. "Joint trade liberalization and tax reform in a small open economy: the case of Egypt," Journal of Development Economics, Elsevier, vol. 61(2), pages 365-392, April.
    9. Mathieu-Bolh, Nathalie, 2017. "Can tax reforms help achieve sustainable development?," Resource and Energy Economics, Elsevier, vol. 50(C), pages 135-163.
    10. Dissou, Yazid, 2005. "Cost-effectiveness of the performance standard system to reduce CO2 emissions in Canada: a general equilibrium analysis," Resource and Energy Economics, Elsevier, vol. 27(3), pages 187-207, October.
    11. Stiglitz, Joseph E., 2018. "Pareto efficient taxation and expenditures: Pre- and re-distribution," Journal of Public Economics, Elsevier, vol. 162(C), pages 101-119.
    12. Beat Hintermann, 2011. "Market Power, Permit Allocation and Efficiency in Emission Permit Markets," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 49(3), pages 327-349, July.
    13. Peter Sørensen, 2007. "The theory of optimal taxation: what is the policy relevance?," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 14(4), pages 383-406, August.
    14. Dieckhoener, Caroline & Hecking, Harald, 2012. "Greenhouse Gas Abatement Cost Curves of the Residential Heating Market – a Microeconomic Approach," EWI Working Papers 2012-16, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    15. Lawrence H. Goulder & Ian W.H. Parry & Roberton C. Williams III & Dallas Burtraw, 2002. "The Cost-Effectiveness of Alternative Instruments for Environmental Protection in a Second-Best Setting," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 27, pages 523-554, Edward Elgar Publishing.
    16. David L. Kelly, 2006. "Subsidies to Industry and the Environment," Working Papers 0602, University of Miami, Department of Economics.
    17. Last Name, First Name, 2009. "Distributional Impacts of Carbon Pricing Policies in the Electricity Sector," RFF Working Paper Series dp-09-43, Resources for the Future.
    18. Hunt Allcott & Benjamin B Lockwood & Dmitry Taubinsky, 2019. "Regressive Sin Taxes, with an Application to the Optimal Soda Tax," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 134(3), pages 1557-1626.
    19. Ian W.H. Parry, 2002. "A Second-Best Analysis of Environmental Subsidies," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 28, pages 555-572, Edward Elgar Publishing.
    20. Ian W.H. Parry & Antonio M. Bento, 2002. "Tax Deductions, Environmental Policy, and the "Double Dividend" Hypothesis," Chapters, in: Lawrence H. Goulder (ed.), Environmental Policy Making in Economies with Prior Tax Distortions, chapter 22, pages 397-426, Edward Elgar Publishing.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:218:y:2019:i:c:p:228-244. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.