A Study On The Recycling Model Of Waste Household Appliances Based On The Old-for-new Policy

Government has introduced the old-for-new policy to home appliance in order to promote the development of home appliance recycling industry, to stimulate the domestic demand for home appliances, and to supports and develops our country home appliance industry in June of2009. The smooth implementation of the activities not only makes our country home appliance industry to get rapid development, but also has a triple meaning of economic, social and environmental protection.By analyzing optimal solution in the condition of the different body to implement the strategy, the writer found out when the manufacturer consider his profit maximization, two conclusions can be obtained:(1) If manufacturer implement the subsidy policy, they will recycling by himself or entrust distributor, and do not entrust a third party to recycling;(2) If the government implement it, the manufacturer will choose recycling by himself. And by comparing two bodies, the writer find the profits which manufacturer obtains in the condition of the government implements the policy were higher than the manufacturer does. Therefore, manufacturer is more willing to practice the subsidy policy by the government. But because the subsidies come from fiscal spending, sustained investment will increase the government’s financial burden, so the government implementing the subsidy policy won’t be long. Finally, based on the old-for-new case of Haier, the writer verifies the correctness of the conclusions.