A combined input–output/decision making trial and evaluation laboratory method for evaluating effect of the remanufacturing sector development

Abstract

The increasingly intensive industrial activities in emerging economies like China have caused serious resource depletion and pollution issues. As remanufacturing practices effectively solve common environmental problems in recycling and processing stages by minimizing emissions of wastes, remanufacturing has become an important eco-industry, and it has been gradually adopted in recent years in China. Based on the input–output theory and previous studies, this paper establishes an input–output model with multiple remanufacturing sectors, and develops a combined input–output and Decision Making Trial and Evaluation Laboratory method. Then, using the input–output table of China in 2007, the combined method is used to examine the role of the remanufacturing sector in the national economy as well as its symbiotic effects with other sectors for energy saving and emissions reduction. The results show that the remanufacturing development is far below the average development level of other sectors in China. With the rising market share of remanufacturing, the demand of some energy-intensive and pollution-intensive sectors, including Smelting and Rolling of Metals, and Production & Supply of Electric Power & Heat Power, can be significantly decreased. But the demand of Traffic, Transport and Storage is increased. The results can provide a scientific basis in formulating economic policies to promote the remanufacturing development and the macro adjustment of the industrial structure for the government.