Efficient Take-Back Legislation
Article first published online: 26 MAR 2009
© 2009 Production and Operations Management Society
Production and Operations Management
Volume 18, Issue 3, pages 243–258, May/June 2009
How to Cite
Atasu, A., Van Wassenhove, L. N. and Sarvary, M. (2009), Efficient Take-Back Legislation. Production and Operations Management, 18: 243–258. doi: 10.1111/j.1937-5956.2009.01004.x
- Issue published online: 11 MAY 2009
- Article first published online: 26 MAR 2009
- History: Received: April 2007; Accepted April 2008 by Kalyan Singhal; after 1 revision.
- social welfare
Product and waste take-back is becoming more regulated by countries to protect the environment. Such regulation puts an economic burden on firms, while creating fairness concerns and potentially even missing its primary target: environmental benefits. This research discusses the economic and environmental impacts of extended producer responsibility type of legislation and identifies efficiency conditions. It is shown that the right policy would (i) make producers responsible for their own waste to avoid fairness concerns and (ii) favor eco-design producers to create stronger environmental benefits. Furthermore, the efficiency of take-back systems is also driven by environmental classification of products, industry structure, and end-user willingness to participate in take-back programs.