Recycling Channels Research Articles

Recycling Versus Leasing in Closed-Loop Supply Chain: A Comparative Analysis Anchored on Consumer Ownership Perceptions

Manufacturers increasingly recycle end-of-life products to realize residual economic value and mitigate environmental impacts on the economic system. Concurrently, with the burgeoning growth of the product-service system, leasing models offer an alternative method to complete the material loop without direct collection. While prior research has delved into recycling channels, incentive mechanisms, and remanufacturing within closed-loop supply chain management, a comparative analysis between recycling and leasing strategies remains under-explored. This study seeks to bridge this gap by elucidating the manufacturer’s strategic decision-making process, factoring in consumers’ product ownership perceptions. We propose a manufacturer decision model anchored on consumer choices and segment it into three scenarios based on varying ownership perceptions. Our analysis contrasts market demand and profit outcomes across these scenarios. Notably, we discern that a hybrid strategy is optimal when ownership perception is low; however, when such perception is heightened, a dedicated recycling strategy proves more advantageous. Importantly, introducing a leasing option does not entirely overshadow the conventional sales market but is susceptible to being overshadowed itself. From a managerial standpoint, while integrating a leasing program might augment revenue streams, sole reliance on it is inadvisable. Furthermore, reshaping consumption paradigms to emphasize product functionality over ownership can pave the way for more expansive leasing strategies, optimizing revenue generation within a closed-loop framework.

Do recycling channels affect young consumers' choices for formal power battery recycling?

Consumers are the starting point for power battery recycling, but it is still unclear what influences their choice of formal recycling channels. Through a structural equation model, this study explored the effects of recycling channels (online and offline), policy incentives, and environmental awareness on young consumers' intention and behavior towards formal power battery recycling (PBR). Our findings reveal the following: (1) There is a significant difference in the distribution of latent variable scores, with an average score ranging between 2.85 and 4.87, with the score for perceived convenience being the lowest. (2) Both online and offline recycling channels improve young consumers' perceived convenience, with a greater effect from offline recycling channels. Perceived convenience mediates the relationship between offline recycling and formal recycling intention. Policy incentives and environmental awareness also significantly increase consumers' intention to formal PBR. (3) Multivariate analysis of gender, age, and income shows that offline recycling channels have a significant positive effect on the perceived convenience of male consumers in choosing formal PBR. In contrast, online recycling channels have a significant positive effect on the perceived convenience of female consumers. Offline recycling channels have a significant positive effect on the perceived convenience of consumers below the age of 30. Online recycling channels significantly affect the perceived convenience of low-income consumers (≤200,000 yuan), while the effect on high-income groups is insignificant. The results of this study can better clarify the mechanism of consumers' choices of formal PBR, providing a basis for the government and enterprises to develop policy measures.

Optimal strategies for a multi-channel recycling supply chain in the clothing industry: considering consumer types

PurposeThis study aims to focus on the clothing recycling supply chain and aims to provide optimal decisions and managerial insights into supply chain strategies, thereby facilitating the sustainable development of the clothing industry.Design/methodology/approachBased on previous single- and dual-channel studies, game theory was employed to analyze multiple recycling channels. Concurrently, clothing consumer types were integrated into the analytical models to observe their impact on supply chain strategies. Three market scenarios were modeled for comparative analysis, and numerical experiments were conducted.FindingsThe intervention of fashion retailers in the clothing recycling market has intensified competition across the entire market. The proportions of various consumer types, their preferences for online platforms and their preference for the retailer’s channel influence the optimal decisions and profits of supply chain members. The diversity of recycling channels may enhance the recycling volume of clothes; however, it should meet certain conditions.Originality/valueThis study extends the existing theory from a channel dimension by exploring multiple channels. Furthermore, by investigating the classifications of clothing consumers and their influence on supply chain strategies, the theory is enhanced from the consumer perspective.

Survey on actions and willingness towards the disposal, collection, and recycling of spent lithium-ion batteries in Malaysia

The quantity of spent lithium-ion batteries (LIBs) is expected to increase as its usage grows globally. In Malaysia, the biggest contributors to spent LIBs are consumer electronics (CEs), which if not properly managed, can jeopardize both the environment and human health. Additionally, the supply of raw materials for LIBs are limited. The risks to the supply chain for LIBs can be mitigated through recycling and reuse, which calls for the need of a robust circular economy model. Currently, there is a lack of local research on spent LIBs and to address this gap, the present study surveyed the actions and willingness of the public towards the disposal, collection, and recycling of LIBs, through the scope of CEs, as electric vehicles (EVs) currently does not dominate the LIB market in Malaysia. A national online survey via convenient sampling was carried out. It was found that a majority of respondents had never sent spent LIBs for recycling while 38.2% of the respondents disposed LIBs directly into the trash bin. The survey also determined that a huge number of the respondents were willing to recycle but lack knowledge and information on the disposal and recycling channels. On the other hand, 0.5% of the respondents was not motivated to recycle LIBs. Following that, relevant recommendations were set forth, revolving around three major categories – (1) laws, policies, and regulations, (2) infrastructures and technologies, and (3) education and awareness.

Managing mass customization products with modular design for recycling in a closed‐loop supply chain

AbstractInvesting in the modular architecture design for mass customization (MC) products cannot only enable product variety, thereby improving MC ability to cope with consumer individual needs, but also increase the product interchangeability, thereby reducing the recycling and remanufacturing costs. This paper considers a closed‐loop supply chain (CLSC) with MC, in which the manufacturer sells the new, modular MC products via the retailer and also actively recycles the used ones for remanufacturing. We study the optimal modularity level for new MC products and the best recycling channel for used MC products in a CLSC. One centralized and two decentralized recycling decision models are formulated, and then the equilibrium solutions among proposed models are compared and analyzed. The government subsidy and channel leadership are further discussed in extension. Different from the traditional view that outsourcing the recycling activity to retailer is best because of its proximity to consumers, our results suggest that the manufacturer directly recycling used MC products can be optimal in terms of modularity level, recycling rate, supply chain profits, total social surplus, and decision‐making speed.

E-waste is toxic, but for whom? The body politics of knowing toxic flows in Delhi

Bodily knowledge and lived experience of toxic exposures in e-waste markets are central to policies and legal frameworks that are being rolled out globally enforcing the “polluter pays” principle. Yet, the sensory experience of toxicity is far from the straightforward, narratable knowledge, which it is often made out to be. This article builds on twelve months of research into the process of establishing formal e-waste recycling channels in New Delhi, India. Environmental practitioners and e-waste workers, each in a different relation to power and toxicity, presented contradictory understandings and challenged the continuity between sensing bodies posed by environmental advocacy narratives. Acknowledging the difficulty to pin down lived experience, I compare the certainty with which employees of a producer responsibility organisation present toxicity for the purpose of spreading awareness to the ambivalence with which informal e-waste recyclers relate to the toxicity in their own environment. The paper highlights the process of turning bodily experience into knowledge and proposes that knowing toxicity is the result of socially and economically inflected relations between bodies, chemicals, forms of knowledge, and the material dismantling process. Rather than accepting the immediacy of sensory experiences, or looking to find the authentic witness, I suggest a triangulation of bodies differently positioned in relation to the processes and places in question.

A novel coordination mechanism to coordinate the multi-agent reverse supply chain with fairness concerns

In the recycling industry, reverse supply chain (RSC) management with used and end-of-life product collection and remanufacturing has an important role to play with respect to improving environmental sustainability. Such a RSC is generally composed of more than two heterogenous agents such that the existing contracts in the literature fail to coordinate it. Besides, as long as one of these agents makes profit comparisons and exhibits fairness concerns, it would further complicate this coordination problem. In this paper, we develop a biform game-based coordination mechanism, combining the non-cooperative and cooperative games, to coordinate a multi-agent RSC with one remanufacturer and two competition collectors, where one of the collectors has distributional fairness concerns. Applying the game-theoretic and numerical analyses, we obtain the following results: (1) Our proposed methods accomplish the coordination in the sense that all the RSC agents are better off than in the case of the non-cooperative game. (2) We identify the conditions under which the fairness-minded collector would achieve fair outcomes in the biform game, as is the case for the non-cooperative game. (3) In contrast to the non-cooperative game case, the biform game mechanism resolves the impact of fairness concerns on the recycling channel to a certain extent, as both the coalition externalities and biform game-based contracts make it more compatible across all RSC agents. Our main contributions are the adoption of novel biform games combined with behavioral economics factors to study the coordination challenge of multi-agent RSC with collector's fairness concerns.

Optimal pricing and carbon emission reduction decisions for a prefabricated building closed-loop supply chain under a carbon cap-and-trade regulation and government subsidies.

This paper explores a two-level prefabricated building closed-loop supply chain (CLSC) comprising a retailer and a prefabricated building manufacturer (PBM) under carbon cap-and-trade legislation and the government subsidies of carbon emission reduction (CER). In this CLSC, the PBM and the retailer recycle used products through their independent recycling channels. The optimum pricing and CER strategies within both decentralized and centralized systems, respectively, are analyzed. The Stackelberg game is used in the decentralized system to determine the optimum PBM's CER level and the retailer's pricing. By analysis, it concludes that increasing the carbon trading price can stimulate prefabricated construction corporations to improve their CER level, and that the government subsidy rate has a great effect on the profits of the PBM. Numerical examples with sensitivity analysis are used to further evaluate the roles of important factors in the optimum CER and pricing solutions of the prefabricated building CLSC in two dissimilar systems.

The mechanism of retired power batteries recycling through blockchain token incentives

With the development of the electric vehicle industry, an increasing number of power batteries are reaching retirement. It is essential to return retired power batteries to formal recycling channels. To tackle the shortcomings in combating unqualified recyclers in traditional government subsidy and target responsibility models, the paper adopts the design science research method and proposes a novel approach that combines the roles of government and the market. Firstly, a token incentive mechanism is introduced and designed. Secondly, the shortcomings of the traditional models are analyzed, and the advantages of the token incentive models are highlighted. Finally, we examine the influence of different models on the manufacturer profits and social benefits. The results show that the token incentive model can combat the unqualified recyclers effectively, but the manufacturers will pay more cost within their capacity to bear expenses. In addition, the token incentive model yields more significant.significant social benefits.

Channel leadership and performance for a closed-loop supply chain considering competition

This paper investigates channel leadership and performance in a closed-loop supply chain (CLSC) that involves the competition among an electric vehicle manufacturer (EVM), an electric vehicle recycler (EVR), and a third-party recycler (3PR). We develop a game-theoretic model to obtain the CLSC’s equilibrium outcomes for the EVM-led and EVR-led recycling channels and examine the impact of competition on these results. We then compare the equilibrium outcomes and discover that the EVM, EVR, and 3PR have difficulty aligning their preferences for recycling leadership mode, necessitating technological advancements in remanufacturing and governmental intervention. Our research highlights the significance of environmental responsibility awareness in the recycling process and discusses environmental damage and social welfare. Our findings indicate that in situations where the total recycling rate of the CLSC is low, the EVR may offer a higher price to prevent excessive new battery flow into the market. We suggest that the government should encourage more local EVRs to participate in the recycling system to reduce pollution. Finally, we extend our analysis to the cost-savings in remanufacturing and heterogeneous buyback prices.

Channel Selection of Closed-Loop Supply Chain for Scrapped Agricultural Machines Remanufacturing

Along with economic development and technological innovation, rapid expansion of agricultural machinery has sparked widespread concern. In particular, the superiority of scrapped agricultural machinery recycling and remanufacturing in improving environmental sustainability, economic benefits, and carbon emission reduction has garnered public attention. Based on this reality, this study constructs models for five different agricultural machinery recycling channels according to different actors involved in recovery, dismantling, and remanufacturing. Each model’s equilibrium is determined by mathematical deduction. The applicable condition of each model and the influence of multiple factors are analyzed. The results indicate the following: (i) no single recycling channel is definitely superior to others, and different channels have their own applicable conditions that are influenced by transfer payments, supply chain cooperation, recycling prices, and supply and demand; (ii) cooperative scenarios are more conducive to attracting third-party enterprises to participate to increase supply chain revenue; (iii) rise in recovery and remanufacturing prices may lead to divergence among supply chain parties on channel selection; and (iv) oversupply requires government subsidies to maintain recycling and remanufacturing.

Achieving Triple Benefits in a Platform-Based Closed-Loop Supply Chain: The Optimal Combination between Recycling Channel and Blockchain

In order to solve the problem of false recycling, where the real recycling volume does not match the theoretical one, blockchain is widely used in practice due to its characteristics of transparency, traceability, and tamper resistance. To study its value in academics, this paper focuses on a closed-loop supply chain (CLSC) consisting of a manufacturer and an online platform. This paper discusses the implementation conditions of blockchain, the impact on enterprise decision making, and manufacturer recycling channel selection, and the triple benefits of economy, environment, and society in the CLSC with blockchain empowerment are achieved. Because of the nontransparency of the supply chain, the problem of false recycling is always present. To further solve the problem of false recycling, the recycler decides whether to implement blockchain or not. Through analysis and numerical examples, it is concluded that the greater the difference between real and theoretical recycling volumes, the greater the need for blockchain implementation. At the same time, three major effects of blockchain implementation are defined as decision incentive effect, marketing leverage effect, and incentive alignment effect, which reveal the impact of blockchain on increasing the motivation of CLSC members to make efforts, expanding the market size by improving brand goodwill, and avoiding the inconsistency between the manufacturer and the platform in the preference of the recycling channel. In addition, under blockchain empowerment, a cost range of blockchain implementation is defined, where both the manufacturer and the platform are better off, as well as the optimal recycling channel, which achieves the triple benefits of the CLSC.

Equilibrium analysis of transaction modes and recycling channels in a closed-loop supply chain with an online platform

Due to resource shortages and environmental protection, recycling of used products and remanufacturing have attracted more attention. This paper develops a game-theoretic model to investigate a key question the supply chain members are facing: When should the platform use the agency mode instead of the traditional reselling mode, and when should the manufacturer outsource recycling activities to the platform instead of recycling by himself? The results demonstrated the following: it is better for the manufacturer to outsource the recycling activities (recycle by himself) to the platform if the platform uses the agency mode (reselling mode); for the platform, the best choice is always the agency mode no matter what the recycling channel is; as a result, the equilibrium outcome will be the case where the platform uses the agency mode while the manufacturer chooses to outsource the collection of used products to the platform. This equilibrium leads to the highest recycling ratio, but does not guarantee the supply chain members get the highest but also is not the lowest profits. This study sheds light on how the decisions of transaction modes and recycling channels interact with each other and demonstrates the impact of such interactions on the platform, the manufacturer and the consumers. Furthermore, the results can help one to identify the most appropriate transaction modes and recycling channels for the platform and the manufacturer respectively.

Coordination Analysis of the Recycling and Remanufacturing Closed-Loop Supply Chain Considering Consumers’ Low Carbon Preference and Government Subsidy

Guided by the goals of carbon peaking and carbon neutrality, in order to coordinate the recycling and remanufacturing closed-loop supply chain (CLSC), considering the strengthened low-carbon awareness of consumers and the high cost of carbon emission reduction(CER), realizing that the demand of remanufactured product is affected by both market price and manufacturer’s CER effort and that the manufacturer is responsible for CER, this study focuses on the hybrid recycling between the manufacturer and retailer. Based on Stackelberg game theory, it constructs the profit models for various interested parties under centralized and decentralized decision-making models to study consumer low carbon preference coefficient and government CER subsidy coefficient, in order to work out the optimal pricing strategy and the level of manufacturer’s CER effort under two decision models, and designs a cost-and-benefit-sharing contract to coordinate the supply chain. The results show that: (1) total recycling amount and total profit under CLSC are negatively correlated with recycling channel competition coefficient; (2) government CER subsidy and consumers’ low carbon preference help enhance both total profit under CLSC and the zeal of manufacturers for CER; and (3) the parameters of contracts in some circumstances contribute to alleviating the competition between manufacturer and retailer cycling channels and increasing the total recycling amount under CLSC. Meanwhile, the profit for various interested parties and total profit under CLSC, and the level of a manufacturer’s CER effort, can be simultaneously improved. Consequently, the Pareto improvement and sustainable development for the CLSC can be achieved.

Hub-driven policy packages as a basis for e-waste reform: rationales and a case study

ABSTRACT Extended Producer Responsibility (EPR) principles have emerged as the template for e-waste policies, centered on establishing regulated collection and recycling channels. Originating in the global North, these policies are increasingly adopted in the global South where e-waste is primarily ‘managed’ by the informal sector, centered in spatially defined hubs. These formal systems fail to achieve collection quotas, while further marginalizing informal recyclers by delegitimizing their access to e-waste. We suggest an alternative hub-centered approach to e-waste reform based on eight years of research and advocacy within the Israel-West Bank e-waste system. We offer several converging rationales for centralizing hubs in e-waste policies and a case study demonstrating an integrated hub-driven package of business, enforcement, and cleanup measures. While the unique complexities of the Israeli-Palestinian case offer an exceptional window into the dynamics of a hub-driven approach, similar packages might shape e-waste policy reform throughout the global South.

Differences and determinants for polluted area, urban and rural residents’ willingness to hand over and pay for waste mobile phone recycling: Evidence from China

Currently, China has the largest generation volume of waste mobile phones (WMPs), but the recycling rate is still negligible. How to improve the willingness to hand (WTH) over to formal recycling channels and willingness to pay (WTP) have become the most core problems in the e-waste recycling industry. As the important link between WMPs generation and collection, the residents’ role and function are attracting more and more attention. Thus, this study is designed to identify the determinants of the residents’ WTH and WTP for WMPs through the contingent valuation method (CVM). At the same time, it will explore the current existing gaps from the urban and rural residents. Especially, this study also considers Guiyu Town as one special rural region for understanding the differences with other regions. The results show that the respondents generally have the relatively lower knowledge and cognition on WMPs recycling. Only 9.4% respondents are satisfied with the current government's management of WMPs. Personal information leakage is an important reason for low WTH. The WTH of Guiyu, urban and rural respondents were 51.3%, 45.9% and 41.2%, respectively; while their WTP were 46.80%, 31.70% and 37.80%, respectively. Finally, it is estimated that their WTP values were 18.75 ($2.81), 16.14 ($2.42) and 15.85 ($2.38) RMB per unit, respectively. The demographic variables, cognition and attitude are important factors on all residents' WTH and WTP. Meanwhile, it is indicated that if owning higher WTH, the residents will trend to higher WTP. Especially, the WTH and WTP of Guiyu residents are higher than other residents.

Optimal Recycling Channel Selection of Power Battery Closed-Loop Supply Chain Considering Corporate Social Responsibility in China

With economic development and societal progress, the supply chain should not only focus on profitability, but also environmental protection, as well as undertake corresponding corporate social responsibility (CSR). The operational decisions of the closed-loop supply chain (CLSC) in the power battery industry should rather consider the impact of CSR. Thus, this paper studies the optimal recycling channel selection and coordination of CLSC in the power battery industry under the consideration of CSR efforts and uncertain demand. By considering the CSR efforts taken by the manufacturer, decentralized and coordination decision-making models under different recycling modes (including manufacturer recycling, retailer recycling and third-party recycling) are constructed to analyze the optimal decision of CLSC. After that, the models were validated through numerical and sensitivity analysis, followed by discussion and management insights. It is found that when consumers are sensitive to the level of CSR effort, CSR effort has a positive impact on the profits of participants in CLSC. Additionally, the coordination decision-making model always outperforms the decentralized decision-making model under the same recycling mode, so reasonable profit-sharing contracts are developed to ensure the implementation of coordination decision-making. Moreover, transfer price plays different roles in different decision situations and recycling modes, while recycling cost is critical to the overall profit of the supply chain and influences the choice of recycling channel.

The Optimal Combination between Recycling Channel and Logistics Service Outsourcing in a Closed-Loop Supply Chain Considering Consumers’ Environmental Awareness

In the closed-loop supply chain, many suppliers opt for self-recycling or entrust retailers to recycle. Under both recycling channels, the member responsible for recycling can undertake or outsource logistics services. This paper investigates how consumers’ environmental awareness and recycling cost-saving affect the optimal combination of recycling channel and logistics-service strategy. To this end, we mathematically formulate the supplier-led Stackelberg game theoretical-framework, and apply the Karush–Kuhn–Tucker conditions for constrained optimization. We examine the optimal combination under the impact of consumers’ environmental awareness and recycling cost-saving on profits, environmental impact and social welfare, using numerical analysis. Results demonstrate that as consumers’ environmental awareness and recycling cost-saving remain at a higher level, the supplier and retailer will both achieve maximum profits when the supplier entrusts the retailer to recycle and the retailer undertakes the logistics services. Meanwhile, the third party will choose to be entrusted with services by the supplier, rather than the retailer. To improve supply-chain performance, the retailer should assume social responsibility to recycle and build the logistics-service system.

Assessment of cobalt recycling potential and environmental impact in China from 1994 to 2020.

Cobalt recycling is important for solving environmental problems such as resource shortage and pollution emissions. This paper quantifies the positive significance of cobalt recycling on resource replenishment and pollution emission by using the substance flow analysis and life cycle analysis. The results show that the proportion of recycled cobalt supplied as cobalt raw material is 7.1%, which improves the supply structure of the resource. Meanwhile, the environmental impact of recycling cobalt using the combined treatment process is low. The environmental impact of mining cobalt from mines is about 4.03-41.53 times that of recycling cobalt from cobaltiferous waste materials. However, the overall cobalt recycling is not ideal. First, the cobalt recycling rate is growing slowly. From 1994 to 2020, 245,132 t of cobalt-containing final products entered waste management in China. However, only 79,593 t of cobalt have been recycled, with a recycling rate of 32.47%. Secondly, many recycling enterprises only carry out recycling for a certain type of cobaltiferous waste materials due to the non-uniform cobalt recycling process. Finally, China's cobalt recycling policy does not divide the recycling channels for cobalt waste and does not regulate the specific process. In the future, China should set up separate recycling systems for cobaltiferous waste materials according to different categories and consider adopting combined treatment processes. China can only promote the sustainable use of cobalt if it ensures stable and orderly cobalt recycling in terms of policy and technology.

Recycling channel selection and financing strategy for capital-constrained retailers in a two-period, closed-loop supply chain

This article studies a two-period, closed-loop supply chain (CLSC) with manufacturer or retailer recycling. It establishes a model analysis framework to analyze pricing optimization strategies and the channel-mode selection of electric vehicle batteries and considers manufacturer recycling and retailer recycling scenarios. When a retailer recycles, it needs to invest capital to build its recycling channel and so suffers from capital constraints. For this reason, retailers consider bank loans or trade-credit financing from manufacturers. This work explores a two-stage, CLSC pricing strategy that considers consumers’ preferences for remanufactured products and recycling rates, and it investigates financing channels for capital-constrained retailers. It analyzes optimal equilibrium strategies in three modes and compares the recycling and financing modes. Through numerical examples, it analyzes the effects of value preference rates and recycling rates of remanufactured products on supply chain profits, product demand, and model selection. The results show that the recycling rate can effectively incentivize the demand for new products in the first period. For any remanufactured product recycling cost, the manufacturer’s profit is most significant in the retailer-recycling bank financing model, and the retailer’s profit is largest in the manufacturer recycling model. As the consumer preference rate for remanufactured products increases, the demand for new products in the second stage decreases and the demand for remanufactured products increases. The retailer recycling trade-credit financing from the manufacturer model gives the largest profit to the retailer when the preference rate is significant or when the preference rate is low with a moderate recycling rate.