Recycling and Reverse Logistics

A key element in government efforts to increase recycling has been the development of government based curbside recycling programs. However, this supply based approach to recycling may disrupt the market equilibrium, with potential negative long term consequences. A demand based system may work more efficiently to ensure the long term success of recycling. This paper discusses the idea of recycling as a part of reverse logistics, and suggests how governmental intervention on the demand side may help encourage the development of recycling in the context of a reverse logistics system where supply and demand are more closely aligned.

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