Prospects for Automobile Recycling: An integrated Approach of Systems Dynamics and Life-Cycle Assessment

An integrated approach of life-cycle assessment and systems dynamics is applied to analyze the current and inter-temporal effects of automobile recycling and to propose strategic policies for this issue. Life-cycle assessment is employed to identify the current automobile recycling problem, which results from the interactions among environmental concerns, regulatory mandates, technological innovations, and market economics. Systems dynamics is used to construct a computer simulation model in order to examine the effectiveness of different recycling policies. The results of the model simulation show that the automobile industry would be capable of dealing successfully with regulatory and economic challenges from automobile recycling by efficiently adjusting the current market system. Europe's take-back legislation and deposit systems are not necessary in the United States. Additionally, policymakers should be careful about setting regulatory requirements, such as fixed recycling targets and classifying ASR as hazardous waste. Currently, the domestic government and industry can adopt a wait-and-adjust policy and focus on technological development and information collecting. A joint effort from both the public and private sectors is needed in order to remove the barriers of automobile recycling, develop new technologies, improve the market economics, as well as arrive at a sustainable solution for the long-term development of the society. Thesis Supervisor: John Ehrenfeld Title: Senior Research Associate, Center for Technology, Policy, and Industrial Development