IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v262y2023ics0925527323001597.html
   My bibliography  Save this article

Closing the loop in a duopolistic circular economy model

Author

Listed:
  • Agliardi, Elettra
  • Kasioumi, Myrto

Abstract

We analyze recycling as firm's optimal strategy in a duopolistic market, under the cases of a linear economy (no recycling technology), semi-circular economy (one firm recycles), and a circular economy (both firms recycle). Furthermore, our analysis will be separated into two cases: when only one firm recycles, then it can either choose to use the recycled material in its production or sell part (or all) of it to the other firm; similarly, if both firms can recycle, they can either use the recycled material they produced, or sell all of it or just part of it to the other firm. We characterize the resulting equilibria showing under which circumstances the economy is linear, semi-circular, or when it “closes the loop”, being fully circular (both firms recycle under alternative organizational structures).

Suggested Citation

  • Agliardi, Elettra & Kasioumi, Myrto, 2023. "Closing the loop in a duopolistic circular economy model," International Journal of Production Economics, Elsevier, vol. 262(C).
    • Handle: RePEc:eee:proeco:v:262:y:2023:i:c:s0925527323001597
    DOI: 10.1016/j.ijpe.2023.108927
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527323001597
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2023.108927?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. Schlosser, Rainer & Chenavaz, Régis Y. & Dimitrov, Stanko, 2021. "Circular economy: Joint dynamic pricing and recycling investments," International Journal of Production Economics, Elsevier, vol. 236(C).
    2. David Carfí & Alessia Donato, 2021. "Environmental Management through Coopetitive Urban Waste Recycling in Eco-Industrial Parks," Mathematics, MDPI, vol. 9(19), pages 1-30, October.
    3. Myrto Kasioumi & Thanasis Stengos, 2020. "The Environmental Kuznets Curve with Recycling: A Partially Linear Semiparametric Approach," JRFM, MDPI, vol. 13(11), pages 1-26, November.
    4. Di Vita, Giuseppe, 2001. "Technological change, growth and waste recycling," Energy Economics, Elsevier, vol. 23(5), pages 549-567, September.
    5. Bongers, Anelí & Casas, Pablo, 2022. "The circular economy and the optimal recycling rate: A macroeconomic approach," Ecological Economics, Elsevier, vol. 199(C).
    6. Ioannis Kostakis & Konstantinos P. Tsagarakis, 2022. "Social and economic determinants of materials recycling and circularity in Europe: an empirical investigation," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 68(2), pages 263-281, April.
    7. Ting Li & Dongyun Yan & Shuxia Sui, 2020. "Research on the Complexity of Game Model about Recovery Pricing in Reverse Supply Chain considering Fairness Concerns," Complexity, Hindawi, vol. 2020, pages 1-13, May.
    8. Selden Thomas M. & Song Daqing, 1995. "Neoclassical Growth, the J Curve for Abatement, and the Inverted U Curve for Pollution," Journal of Environmental Economics and Management, Elsevier, vol. 29(2), pages 162-168, September.
    9. Ting Li & Dongyun Yan & Xiaogang Ma, 2019. "Stability Analysis and Chaos Control of Recycling Price Game Model for Manufacturers and Retailers," Complexity, Hindawi, vol. 2019, pages 1-13, July.
    10. Pittel, Karen & Amigues, Jean-Pierre & Kuhn, Thomas, 2010. "Recycling under a material balance constraint," Resource and Energy Economics, Elsevier, vol. 32(3), pages 379-394, August.
    11. Blomberg, Jerry & Söderholm, Patrik, 2009. "The economics of secondary aluminium supply: An econometric analysis based on European data," Resources, Conservation & Recycling, Elsevier, vol. 53(8), pages 455-463.
    12. Trevor Zink & Roland Geyer, 2017. "Circular Economy Rebound," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 593-602, June.
    13. Hu, Shu & Dai, Ying & Ma, Zu-Jun & Ye, Yu-Sen, 2016. "Designing contracts for a reverse supply chain with strategic recycling behavior of consumers," International Journal of Production Economics, Elsevier, vol. 180(C), pages 16-24.
    14. Zhou, Sophie & Smulders, Sjak, 2021. "Closing the loop in a circular economy: Saving resources or suffocating innovations?," European Economic Review, Elsevier, vol. 139(C).
    15. Hage, Olle & Söderholm, Patrik & Berglund, Christer, 2009. "Norms and economic motivation in household recycling: Empirical evidence from Sweden," Resources, Conservation & Recycling, Elsevier, vol. 53(3), pages 155-165.
    16. Patrick Grüning & Justina Banionienė & Lina Dagilienė & Michael Donadelli & Marcus Jüppner & Renatas Kizys & Kai Lessmann, 2021. "The Quadrilemma of a Small Open Circular Economy Through a Prism of the 9R Strategies," Bank of Lithuania Working Paper Series 96, Bank of Lithuania.
    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. Pietro De Giovanni & Vinay Ramani, 2023. "A Selected Survey of Game Theory Models with Government Schemes to Support Circular Economy Systems," Sustainability, MDPI, vol. 16(1), pages 1-29, December.

    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. Myrto Kasioumi & Thanasis Stengos, 2023. "A Circular Model of Economic Growth and Waste Recycling," Circular Economy and Sustainability, Springer, vol. 3(1), pages 321-346, March.
    2. Meran, Georg, 2023. "Is green growth possible and even desirable in a spaceship economy?," Ecological Economics, Elsevier, vol. 213(C).
    3. Fabre, Adrien & Fodha, Mouez & Ricci, Francesco, 2020. "Mineral resources for renewable energy: Optimal timing of energy production," Resource and Energy Economics, Elsevier, vol. 59(C).
    4. Lafforgue, Gilles & Lorang, Etienne, 2022. "Recycling under environmental, climate and resource constraints," Resource and Energy Economics, Elsevier, vol. 67(C).
    5. Lafforgue, Gilles & Rouge, Luc, 2019. "A dynamic model of recycling with endogenous technological breakthrough," Resource and Energy Economics, Elsevier, vol. 57(C), pages 101-118.
    6. Jixiang Zhang & Chen Zhu, 2020. "Research on the Dynamic Pricing and Service Decisions in the Reverse Supply Chain considering Consumers’ Service Sensitivity," Sustainability, MDPI, vol. 12(22), pages 1-21, November.
    7. Compagnoni, Marco & Stadler, Manfred, 2021. "Growth in a circular economy," University of Tübingen Working Papers in Business and Economics 145, University of Tuebingen, Faculty of Economics and Social Sciences, School of Business and Economics.
    8. André, Francisco J. & Arguedas, Carmen & Rousseau, Sandra, 2024. "Strategic pricing, lifespan choices and environmental implications of peer-to-peer sharing," Journal of Environmental Economics and Management, Elsevier, vol. 125(C).
    9. Zhou, Sophie & Smulders, Sjak, 2021. "Closing the loop in a circular economy: Saving resources or suffocating innovations?," European Economic Review, Elsevier, vol. 139(C).
    10. Hondroyiannis, G. & Sardianou, E. & Nikou, V. & Evangelinos, K. & Nikolaou, I., 2024. "Circular economy and macroeconomic performance: Evidence across 28 European countries," Ecological Economics, Elsevier, vol. 215(C).
    11. Lahcen, Bart & Eyckmans, Johan & Rousseau, Sandra & Dams, Yoko & Brusselaers, Jan, 2022. "Modelling the circular economy: Introducing a supply chain equilibrium approach," Ecological Economics, Elsevier, vol. 197(C).
    12. Dace, Elina & Bazbauers, Gatis & Berzina, Alise & Davidsen, Pål I., 2014. "System dynamics model for analyzing effects of eco-design policy on packaging waste management system," Resources, Conservation & Recycling, Elsevier, vol. 87(C), pages 175-190.
    13. Myrto Kasioumi & Thanasis Stengos, 2020. "The Environmental Kuznets Curve with Recycling: A Partially Linear Semiparametric Approach," JRFM, MDPI, vol. 13(11), pages 1-26, November.
    14. Bilal Boubellouta & Sigrid Kusch-Brandt, 2023. "Driving factors of e-waste recycling rate in 30 European countries: new evidence using a panel quantile regression of the EKC hypothesis coupled with the STIRPAT model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 7533-7560, August.
    15. Bradford David F. & Fender Rebecca A & Shore Stephen H. & Wagner Martin, 2005. "The Environmental Kuznets Curve: Exploring a Fresh Specification," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 4(1), pages 1-28, June.
    16. Ghimire, Narishwar & Woodward, Richard T., 2013. "Under- and over-use of pesticides: An international analysis," Ecological Economics, Elsevier, vol. 89(C), pages 73-81.
    17. Voosholz, Frauke, 2014. "The influence of different production functions on modeling resource extraction and economic growth," CAWM Discussion Papers 72, University of Münster, Münster Center for Economic Policy (MEP).
    18. Etienne Lorang & Antonello Lobianco & Philippe Delacote, 2023. "Increasing Paper and Cardboard Recycling: Impacts on the Forest Sector and Carbon Emissions," Post-Print hal-04690101, HAL.
    19. Monia Niero & Charlotte L. Jensen & Chiara Farné Fratini & Jens Dorland & Michael S. Jørgensen & Susse Georg, 2021. "Is life cycle assessment enough to address unintended side effects from Circular Economy initiatives?," Journal of Industrial Ecology, Yale University, vol. 25(5), pages 1111-1120, October.
    20. Fabian Knorre & Martin Wagner & Maximilian Grupe, 2021. "Monitoring Cointegrating Polynomial Regressions: Theory and Application to the Environmental Kuznets Curves for Carbon and Sulfur Dioxide Emissions," Econometrics, MDPI, vol. 9(1), pages 1-35, March.

    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:262:y:2023:i:c:s0925527323001597. 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.