Emissions Taxes to Drive Remanufacturing to Deliver Environmental and Social Benefits

Document Type

Presentation

Presentation Date

11-10-2014

Abstract or Description

This paper examines how emissions taxes can be used to induce remanufacturing and discusses its resulting economic, environmental and social impacts. By relating important characteristics of remanufacturing (e.g., collection rate, emissions intensity) to production costs, extent of environmental damage and consumer market, we analyze the profit-maximizing policy for a monopolistic firm and the social-welfare maximizing policy for the regulator. We also identify conditions when remanufacturing can be a win-win and a win-win-win strategy under emissions taxes.

Sponsorship/Conference/Institution

Institute for Operations Research and the Management Sciences Annual Conference (INFORMS)

Location

San Francisco, CA

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