The Influence Of Government Regulation On Weee Reverse Logistics In Zhejiang Province

With the rapid growth of China’s population, resources per capita gradually decrease. In addition to developing new energy, how to save resources and promote recycling is the focus of academic research. Waste electrical and electronic equipment(WEEE), an important part of urban garbage, has become the fastest growing and most potentially dangerous waste in the world. However, WEEE is also the “urban mine” for its possession of a large number of renewable resources.This paper investigates the coordination and incentive mechanism of WEEE reverse logistics consisting of manufacturer, recycler and consumer in Zhejiang Province based on the preliminary implementation of Administrative Measure on Fund Levy and Use for WEEE Recycling. Based on government incentives, the relationship between the government, manufacturer and recycler is discussed from the perspective of game theory. How the government enacts fund levy and subsidization standards to achieve social welfare maximization in different recycling modes based on recycling amount is also explored. The main contents are summarized as follows.(1) An analysis of current WEEE reverse logistics in Zhejiang Province: In view of previous questionnaire survey and field research, this paper elaborates current situation of WEEE reverse logistics in Zhejiang Province, summarizes and analyzes the variety of recyclers, WEEE recycling category, price, quantity, treatment, etc.(2) The influence of government regulation on manufacturer autonomous recycling: Based on EPR instrument, the relationship between the government and manufacturer is discussed from the perspective of game theory. How the government enacts fund levy and subsidization standards to achieve social welfare maximization is also explored in view of recycling cost, minimum recycling amount, etc.(3) The influence of government regulation on third-party recycling: Under the conditions of information asymmetry and adverse selection, the relationship between the government and recycler is discussed from the perspective of game theory. How the government makes decision to levy fund on manufacturer and subsidize recycler to maximize social welfare is also explored.This paper conducts a summary of the current WEEE reverse logistics in Zhejiang Province and model analysis. The conclusions are significant and can provide decision-making support for the government to formulate policies and participants in WEEE reverse logistics to carry out business strategies based on EPR system.