Stefan Bühler
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Prof. Dr.
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Bühler
First name
Stefan
Email
stefan.buehler@unisg.ch
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Phone
+41 71 224 2303
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  • Publication
    Circular Business Models: Product Design and Consumer Participation *
    ( 2023-10)
    Stefan Buehler orcid-logo
    ;
    Rachel Chen
    ;
    Daniel Halbheer
    This paper develops an analytical framework to study the mechanics of circular business models in markets where consumers care about recyclability and make both a purchase decision and a disposal decision when the product reaches end-of-life. Transitioning to a circular business model allows the firm to tap into a new source of revenue by recycling end-of-life products and charge a green premium for products with higher recyclability. We show that the firm determines recyclability by balancing the marginal changes in the expected end-of-life utility of the product perceived by consumers and the unit cost net of the expected value of the recovered resources. We also show that stronger consumer concerns about recyclability and a higher market value of the recovered resources increase recyclability, but have an ambiguous impact on price, profit, and the waste footprint of the firm. In addition, we identify the conditions under which the transition from a linear to a circular business model is profitable and socially desirable, and show how policy makers can accelerate the circular transition. Finally, we show that competition has no impact on recyclability but tends to undermine the viability of circularity, and present options for policy makers to improve the performance of circular business models.
    Type: discussion paper
    URI: https://www.alexandria.unisg.ch/handle/20.500.14171/118873
  • Publication
    Type: discussion paper
    URI: https://www.alexandria.unisg.ch/handle/20.500.14171/111608