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Open AccessArticle

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
Sustainability 2016, 8(8), 781; https://doi.org/10.3390/su8080781
Received: 29 April 2016 / Revised: 1 August 2016 / Accepted: 8 August 2016 / Published: 16 August 2016
(This article belongs to the Section Environmental Sustainability and Applications)
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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MDPI and ACS Style

Chang, X.; Fan, J.; Zhao, Y.; Wu, J. Impact of China’s Recycling Subsidy Policy in the Product Life Cycle. Sustainability 2016, 8, 781. https://doi.org/10.3390/su8080781

AMA Style

Chang X, Fan J, Zhao Y, Wu J. Impact of China’s Recycling Subsidy Policy in the Product Life Cycle. Sustainability. 2016; 8(8):781. https://doi.org/10.3390/su8080781

Chicago/Turabian Style

Chang, Xiangyun; Fan, Junjie; Zhao, Yabing; Wu, Jie. 2016. "Impact of China’s Recycling Subsidy Policy in the Product Life Cycle" Sustainability 8, no. 8: 781. https://doi.org/10.3390/su8080781

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Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

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