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Economics of Waste Prevention: Second-Hand Products in Germany

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Listed:
  • Henning Wilts

    (Wuppertal Institute for Climate, Environment and Energy gGmbH, 42103 Wuppertal, Germany)

  • Marina Fecke

    (Wuppertal Institute for Climate, Environment and Energy gGmbH, 42103 Wuppertal, Germany)

  • Christine Zeher

    (Wuppertal Institute for Climate, Environment and Energy gGmbH, 42103 Wuppertal, Germany)

Abstract

Reuse is still seen as a “niche phenomenon” and consumers seem to waste economic opportunities linked to buying and selling second-hand products. For this reason, this paper focuses on incentives and barriers to sell and buy second-hand products, as indicated in the literature, and applies a theoretical framework of transaction costs to explain the existing consumption patterns. For this paper, a representative online survey was conducted in which 1023 consumers in Germany participated, age 16 and older. The data were analyzed for statistically significant deviations between different groups of economic actors selling or buying second-hand products. Results show that valuable unused products exist in households, but barriers such as uncertainties about the reliability of the buyer or the quality of the product hinder the transition into sustainable consumption. Different forms of transaction costs are important explanatory variables to explain why consumers nevertheless predominantly buy new products, although they are aware that second-hand would save money and make an individual contribution to climate protection.

Suggested Citation

  • Henning Wilts & Marina Fecke & Christine Zeher, 2021. "Economics of Waste Prevention: Second-Hand Products in Germany," Economies, MDPI, vol. 9(2), pages 1-10, May.
    • Handle: RePEc:gam:jecomi:v:9:y:2021:i:2:p:74-:d:552682
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    References listed on IDEAS

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    1. Alston, Lee J. & Gillespie, William, 1989. "Resource coordination and transaction costs : A framework for analyzing the firm/market boundary," Journal of Economic Behavior & Organization, Elsevier, vol. 11(2), pages 191-212, March.
    2. Ronald H. Coase, 2000. "The new institutional economics," Chapters, in: Claude Ménard (ed.), Institutions, Contracts and Organizations, chapter 1, Edward Elgar Publishing.
    3. Mariusz Urbański & Adnan ul Haque, 2020. "Are You Environmentally Conscious Enough to Differentiate between Greenwashed and Sustainable Items? A Global Consumers Perspective," Sustainability, MDPI, vol. 12(5), pages 1-25, February.
    4. Vakis, Renos & Sadoulet, Elisabeth & de Janvry, Alain, 2003. "Measuring Transactions Costs from Observed Behavior: Market Choices in Peru," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7p81h66q, Department of Agricultural & Resource Economics, UC Berkeley.
    5. Budica Ilie & Dumitru Aurelia & Busu Oprea Valentin & Purcaru Mona-Lisa, 2015. "Waste Management As Commitment And Duty Of Citizens," Polish Journal of Management Studies, Czestochowa Technical University, Department of Management, vol. 11(1), pages 7-16, June.
    6. Yulia Hristova, 2019. "The Second-Hand Goods Market: Trends and Challenges," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 8(3), pages 62-71, December.
    7. Vakis, Renos & Sadoulet, Elisabeth & de Janvry, Alain, 2003. "Measuring Transactions Costs from Observed Behavior: Market Choices in Peru," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt7p81h66q, Department of Agricultural & Resource Economics, UC Berkeley.
    8. Barbara Borusiak & Andrzej Szymkowiak & Elena Horska & Natalia Raszka & Elżbieta Żelichowska, 2020. "Towards Building Sustainable Consumption: A Study of Second-Hand Buying Intentions," Sustainability, MDPI, vol. 12(3), pages 1-15, January.
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