Disposition Choices Based on Energy Footprints Instead of Recovery Quota

CentER Discussion Paper Series No. 2008-74

37 Pages Posted: 11 Sep 2008

See all articles by H. R. Krikke

H. R. Krikke

Tilburg University - Center and Faculty of Economics and Business Administration

Rob Zuidwijk

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM); Erasmus Research Institute of Management (ERIM)

Date Written: August 25, 2008

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 and cons of various alternatives and complementary measures that might be taken.

Keywords: extended producer responsibility, disposition, energy perspective, substitution effect, government policies, Pareto efficiency

JEL Classification: Q28, K32, C61

Suggested Citation

Krikke, H. R. R. and Zuidwijk, Rob A., Disposition Choices Based on Energy Footprints Instead of Recovery Quota (August 25, 2008). CentER Discussion Paper Series No. 2008-74. Available at SSRN: https://ssrn.com/abstract=1265456 or http://dx.doi.org/10.2139/ssrn.1265456

H. R. R. Krikke (Contact Author)

Tilburg University - Center and Faculty of Economics and Business Administration ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands

Rob A. Zuidwijk

Erasmus University Rotterdam (EUR) - Rotterdam School of Management (RSM) ( email )

P.O. Box 1738
Room T08-21
3000 DR Rotterdam, 3000 DR
Netherlands

Erasmus Research Institute of Management (ERIM)

P.O. Box 1738
3000 DR Rotterdam
Netherlands

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