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Chinese Journal of Management Science ›› 2014, Vol. 22 ›› Issue (5): 131-137.

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Decision Model on E-waste Collecting and Recycling Considering the Leading of Government’s Premium Mechanisms

YU Fu-mao1, ZHONG Yong-guang2, SHEN Zu-zhi3   

  1. 1. College of management, Hangzhou Dianzi University, Hangzhou 310018, China;
    2. Department of Management Science and Engineering, Qingdao University, Qingdao 266071, China;
    3. College of management, Zhejiang University, Hangzhou 310058, China
  • Received:2012-06-21 Revised:2013-05-08 Online:2014-05-20 Published:2014-05-14

Abstract: Most of e-waste have not been recycled and reused in an environment-friendly manner in China mainland, and there are mainly four kinds of collecting and recycling modes: manufacturers collecting (MDC-CMR), dealers collecting (MDC-CDR), third-party collecting (MDC-CTR) and registered e-waste treatment enterprises collecting (MDC-CR). Based on the practical situation, the decision-making problem about the e-waste collecting and recycling considering the leading of government's premium mechanisms is studied in this paper. Four collecting and recycling scenarios are discussed considering the government subsidy, decision models are established and the optimal parameters of the mechanism are discussed accordingly. It is found that the optimal retail price and the market demand of EEE in the four modes are equal. With the same amount of subsidies, the recycling rate of MDC-CMR mode as well as manufacturers, dealers and registered recyclers' profit does not change with government's premium mechanisms. It is also found that MDC-CDR mode and MDC-CTR mode are more desirable than MDC-CMR mode if given the manufacturer responsibility for collecting and recycling. Results of numerical simulations also shown that, the combination of EPR and MDC-CTR can achieve higher recycling rate. Therefore, it is suggested to encourage manufactures, dealers, consumers, and other collectors and recyclers to participate e-waste recycling program from the perspective of system, objectives and processes.

Key words: e-waste, recycling and processing, government subsidies, premium mechanism

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