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Sustainability 2016, 8(8), 781; doi:10.3390/su8080781

Impact of China’s Recycling Subsidy Policy in the Product Life Cycle

1
Department of Management Science and Engineering, East China University of Science and Technology, Shanghai 200237, China
2
Department of Decision Sciences, San Francisco State University, San Francisco, CA 94132, USA
*
Author to whom correspondence should be addressed.
Academic Editor: Andrew Kusiak
Received: 29 April 2016 / Revised: 1 August 2016 / Accepted: 8 August 2016 / Published: 16 August 2016
(This article belongs to the Section Sustainable Use of the Environment and Resources)
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Abstract

This paper examines the impact of the Chinese recycling subsidy policy (CRS-policy) on the recycling and reuse industry across the whole product life cycle. We propose a closed-loop dynamic system to illustrate the production flow and interactions among various industry and market factors. A simulation analysis is conducted using data on gas auto engines in China to evaluate the effectiveness of the CRS-policy in encouraging product recycling and reuse. Specifically, we analyze the preventative and regenerative effects of the CRS-policy, and its impact on environmental pollution and social welfare. We further investigate how market factors, including the manufacturer’s innovation environment, consumer environmental awareness and sensitivity to the subsidy, and recycling and reuse industry profit, affect the effectiveness of the CRS-policy. The study provides strong evidence of the important role of the subsidy policy in the recycling and reuse industry and offers insightful recommendations for enhancing the effectiveness of the subsidy policy. View Full-Text
Keywords: recycling subsidy policy; waste management; system dynamics; China recycling subsidy policy; waste management; system dynamics; China
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This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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Chang, X.; Fan, J.; Zhao, Y.; Wu, J. Impact of China’s Recycling Subsidy Policy in the Product Life Cycle. Sustainability 2016, 8, 781.

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