Economic and environmental implications of the interfirm waste utilisation

Considering the mismatch in supply of and demand for industrial process wastes, we investigate when interfirm waste utilisation can be both economically environmentally superior to no utilisation. The Nash bargaining approach is employed resolve incentive misalignment problem. Our analysis suggests that conversion strategy changes from over-conversion, full conversion, then partial with increasing trading price. Furthermore, an increase disposal fee contributes diversion wastes landfill but may result worse environmental consequences especially a slight reduction production impact compared raw materials. This implies policy makers should charge based on types focus higher lower impacts. Finally, at price, always win-win strategy. While it products substantial producing wastes. Otherwise, relative material usage