The efficiency of remanufacturing in a dynamic input–output model

Abstract

For industrialised economy of ourdays, remanufacturing represents perhaps the largest unexploited resource and opportunity for realising a greater growth of the economy in an environmental-conscious manner. The aim of this paper is to investigate of the impact of remanufacturing in the economy from an economic-efficiency point of view. In static context this phenomenon was analysed in the literature. We use the multi-sector input–output framework in a dynamic context to study intra-period relationships of the sectors of economy. We extend the classical dynamic input–output model taking into consideration the activity of remanufacturing .We try to answer the question, whether the remanufacturing/reuse increases the growth possibility of an economy. We expose a sufficient condition concerning the effectivity of an economy with remanufacturing. By this evaluation we analyse a possible sustainable development of the economy on the basis of the product recovery management of industries.