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Disposition Choices Based on Energy Footprints instead of Recovery Quota

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Author Info
Krikke, H.R.
Zuidwijk, R. (Tilburg University, Center for Economic Research)
Abstract

This paper addresses the impact of disposition choices on the energy use of closed-loop supply chains. In a life cycle perspective, energy used in the forward chain which is locked up in the product is recaptured in recovery. High quality recovery replaces virgin production and thereby saves energy. This so called substitution effect is often ignored. Governments worldwide implement Extended Producer Responsibility (EPR). Policies are based on recovery quota and not effective from an energy point of view. This in turn leads to unnecessary emissions of amongst others CO2. This research evaluates current EPR policies and presents six policy alternatives from an energy standpoint. The Pareto-frontier model used is generic and can be applied to other closed loops supply chains under EPR, exploiting the substitution effect. The measures modeled are applied to five WEEE cases. We discuss results, pros an cons of various alternatives and complementary measures that might be taken.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2008-74.

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Date of creation: 2008
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Handle: RePEc:dgr:kubcen:200874

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Find related papers by JEL classification:
Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
K32 - Law and Economics - - Other Substantive Areas of Law - - - Environmental, Health, and Safety Law
C61 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Optimization Techniques; Programming Models; Dynamic Analysis

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This page was last updated on 2009-11-25.

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