The impact of remanufacturing in the economy

Ferrer, Geraldo; Ayres, Robert U.

doi:10.1016/s0921-8009(99)00110-x

Cited by 122 publications

(66 citation statements)

References 19 publications

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“…Ayres et al (1997) evaluate the economics of remanufacturing and point out some problematic issues specific to remanufacturing that have a substantial impact on profitability. Ferrer and Ayres (2000) analyze the macroeconomic impact of remanufacturing and confirm the intuition that it promotes demand for labor and reduces the consumption of raw materials.…”

Section: Related Researchmentioning

confidence: 60%

Managing New and Remanufactured Products

2006

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W e study a firm that makes new products in the first period and uses returned cores to offer remanufactured products, along with new products, in future periods. We introduce the monopoly environment in two-period and multiperiod scenarios to identify thresholds in remanufacturing operations. Next, we focus our attention on the duopoly environment where an independent operator (IO) may intercept cores of products made by the original equipment manufacturer (OEM) to sell remanufactured products in future periods. We characterize the production quantities associated with self-selection and explore the effect of various parameters in the Nash equilibrium. Among other results, we find that if remanufacturing is very profitable, the original-equipment manufacturer may forgo some of the first-period margin by lowering the price and selling additional units to increase the number of cores available for remanufacturing in future periods. Further, as the threat of competition increases, the OEM is more likely to completely utilize all available cores, offering the remanufactured products at a lower price.

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Section: Related Researchmentioning

confidence: 60%

Managing New and Remanufactured Products

2006

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“…For assessing the economic impact of product recovery and remanufacturing in France, Ferrer and Ayres (2000) incorporated the remanufacturing sector in a harmonised industry-by-industry matrix. This harmonised system was adjusted to consider different demands in labour, energy, primary materials, and inputs from others economic sectors.…”

Section: Closing Supply Chainsmentioning

confidence: 99%

“…These sectors can be represented as new end-of-life systems that would use waste outputs from industries as inputs to generate a usable product for the economy (Nakamura and Kondo 2006;Chen and Ma 2015). In many cases, such new activities would be added to EEIOA in order to model specific material recycling (for example, Ferrer and Ayres 2000;Choi et al 2011;Reynolds et al 2015).…”

Section: Modelling Closing Supply Chainsmentioning

confidence: 99%

Assessing circularity interventions: a review of EEIOA-based studies

Aguilar-Hernandez

Sigüenza-Sanchez

Donati

et al. 2018

Economic Structures

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In the early 1990s, the concept of circular economy was proposed by Pearce and Turner (1990) as a model to transform the traditional open-ended economy into an ongoing closed-loop system from a material perspective. Since then, several scholars and practitioners have adopted multiple definitions for circularity (Winans et al. 2017). After considering 114 conceptual frameworks, Kirchherr et al. (2017) define it as an economic system that substitutes product end-of-life with a set of circularity interventions.Circularity interventions are actions or processes that preserve resources inside the economy (Lieder and Rashid 2016a;Bocken et al. 2017). Such actions are based on three principles (Ellen MacArthur Foundation 2013;Ghisellini et al. 2016): AbstractEnvironmentally extended input-output analysis (EEIOA) can be applied to assess the economic and environmental implications of a transition towards a circular economy. In spite of the existence of several such applications, a systematic assessment of the opportunities and limitations of EEIOA to quantify the impacts of circularity strategies is currently missing. This article brings the current state of EEIOA-based studies for assessing circularity interventions up to date and is organised around four categories: residual waste management, closing supply chains, product lifetime extension, and resource efficiency. Our findings show that residual waste management can be modelled by increasing the amount of waste flows absorbed by the waste treatment sector. Closing supply chains can be modelled by adjusting input and output coefficients to reuse and recycling activities and specifying such actions in the EEIOA model if they are not explicitly presented. Product lifetime extension can be modelled by combining an adapted final demand with adjusted input coefficients in production. The impacts of resource efficiency can be modelled by lowering input coefficients for a given output. The major limitation we found was that most EEIOA studies are performed using monetary units, while circularity policies are usually defined in physical units. This problem affects all categories of circularity interventions, but is particularly relevant for residual waste management, due to the disconnect between the monetary and physical value of waste flows. For future research, we therefore suggest the incorporation of physical and hybrid tables in the assessment of circularity interventions when using EEIOA.

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“…Furthermore, disassembly is performed in the presence of a capacity constraint. Although remanufacturing saves the cost of components and parts, remanufacturing and disassembly operations in particular are inherently more labor intensive (Ferrer and Ayres, 2000;Grubbstrom and Tang, 2006). Therefore, the capacity constraint should be taken into consideration in the model.…”

Section: Figure 1 Product Recovery Optionsmentioning

confidence: 99%