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The Impact of remanufacturing in the economy

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Very few durable goods are recovered at the end of their useful lives. However, this situation could reverse with the development of a stronger remanufacturing industry in the economy. This paper evaluates the impact of remanufacturing in a hypothetical situtation where remanufacturing holds a significant share of the economy, presently dominated by th original manufacturing industries. It would have direct impacts on th demand for several inputs. We adapt the inter-industry input-outputframework with th development of a methodology to consider these changes. Subsequently, we apply the model to the 30-sector aggregation of the French input-output national data to illustrate the method and to evaluate the impact that remanufacturing may have on the economy. The analysis assumes that remanufacturing sectors substitute labor and transport services for the usual inputs such as raw materials and semi-finished goods

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en

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application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp1998/98-14.pdf

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Copyright INSEAD. All rights reserved