Remanufacturing
Article dans une revue: This paper presents a theoretical model of remanufacturing where a duopoly of original manufacturers produces a component of a final good. The specific component that needs to be replaced during the lifetime of the final good creates a secondary market where independent remanufacturers enter the competition. An environmental regulation imposing a minimum level of remanufacturability is also introduced. The main results establish that, while collusion of the firms on the level of remanufacturability increases both profit and consumer surplus, a social planner could use collusion as a substitute for an environmental regulation. However, if an environmental regulation is to be implemented, collusion should be repressed since competition supports the public intervention better. Under certain circumstances, the environmental regulation can increase both profit and consumer surplus. Part of this result supports the Porter Hypothesis, which stipulates that industries respecting environmental regulations can see their profits increase.
Auteur(s)
Sophie Bernard
Revue
- Journal of Environmental Economics and Management
Date de publication
- 2011
Mots-clés
- Remanufacturing
- Competition
- Environmental regulation
- Porter hypothesis
Pages
- 337-351
URL de la notice HAL
Version
- 1
Volume
- 62