Study On The Externality And Compensation Mechanism Of The Waste Electrical And Electronic Equipment Reverse Logistics

At present, the number of Waste Electrical and Electronic Equipment grows rapidlyin China, resulting in waste of resources, ecological destruction and environmentalpollution, which has caused widespread concern in society. China is not only the potentialconsumption country of electrical and electronic equipment, but also the generationcountry of Waste Electrical and Electronic Equipment. When faced with a huge numberof Waste Electrical and Electronic Equipment, how to make the recovery processingsound and environmental and promote the recycling of waste home appliances to beindustrialized and large-scale promoted to develop circular economy of China has becomea major issue to be solved in economic development of China. Externality problems arethe key issues during Waste Electrical and Electronic Equipment recovery processing. Ifwe can make the internalizing externality availably, then the resulting problems can beeffectively addressed.In this paper, based on the study of reverse logistics of Waste Electrical andElectronic Equipment all over the world as well as the external problems, we havesystematically analyzed reverse logistics for Waste Electrical and Electronic Equipmentby the economic analysis principle with three different perspectives of consumers,businesses and government. On the research of manufacturers and recycling companies,we build a static game model of manufacturers and recyclers by adopting game theoryand static efficiency incentives. Studies have shown that when there is no transactioncosts, enterprises can reduce each efficiency loss in the recycling process throughconsultations and signing a distribution of benefits agreement, then improving the overallefficiency of the reverse logistics system, finally efficiently internalizing the externalityissues. We have established a Game Model of government and recycling enterprises withdifferent scales by three-stage game when the study is focused on government andrecycling enterprises. Research shows that government subsidies can effectively reducethe industry threshold in the process of expanding waste electrical and electronicrecycling enterprises, stimulate the enthusiasm of the recycling companies and encouragemore small-scale recycling enterprises to form the safe handling of large-scale enterprises,which can effectively reduce the environmental pollution in disposing the WasteElectrical and Electronic Equipment and eliminate negative externalities in the reverselogistics of Waste Electrical and Electronic Equipment. Finally, contraposing the problems existed in Chinese current recycling of WasteElectrical and Electronic Equipment process, we put forward a number of policyrecommendations for how to build normative recycling system for Waste Electrical andElectronic Equipment, how to establish a fee-setting mechanism for reasonably recyclingWaste Electrical and Electronic Equipment, how to establish an effective regulatoryapproach and how to improve the relevantlaws and regulations.