Price setting for green design

Author

Matthews, H. Scott ; Lave, Lester B.

Author_Institution

Graduate Sch. of Ind. Adm., Carnegie Mellon Univ., Pittsburgh, PA, USA

fYear

1995

fDate

1-3 May 1995

Firstpage

304

Lastpage

309

Abstract

Although much has been said about promoting industrial ecology, little has been done to specify how to incorporate the broad goals of promoting environmental friendliness into a model of profit maximizing behavior for the firm. We outline such a model for products that can be repaired, remanufactured, or recycled. One way to promote optimal product use is to set a price that declines each time the product is reused. Another is a deposit fee that declines with each use. This simple model encourages the firm to find if products as reusable, remanufacturable, or recyclable and focuses on interactions between the firm and the consumer

Keywords

corporate modelling; costing; ecology; economics; environmental factors; product development; recycling; deposit fee; environmental friendliness; green design; industrial ecology; model; optimal product use; pricing; recycling; remanufacture; repair; reuse; Animals; Assembly; Biological system modeling; Costs; Environmental factors; Green products; Guidelines; Manufacturing; Marketing and sales; Recycling;

fLanguage

English

Publisher

ieee

Conference_Titel

Electronics and the Environment, 1995. ISEE., Proceedings of the 1995 IEEE International Symposium on

Conference_Location

Orlando, FL

Print_ISBN

0-7803-2137-5

Type

conf

DOI

10.1109/ISEE.1995.514995

Filename

514995