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J. Wang and N. Mishima
Informal collection activities can help waste collection and provide jobs to the lowincome population. However, if not recycled properly, the WEEE will undoubtedly
generate serious environmental pollution and damage the health of human beings.
From these points of view, one constructive proposal is to incorporate these informal
collectors into the formal collection and treatment channel while expelling informal
recyclers. To analyze the possibility of incorporating informal collectors into formal
channel, reveal the influence on the formalization process, at the meantime, provide
efficient countermeasures for a better formalization extent, a dual-channel collection
and recycling activities model is established in this study. Considering the formal
recycler as the Stackelberg leader, the optimal solutions are solved and the concerned
problems are studied.
Under a certain condition, it is indicated that the bargaining power of the informal
collector has a negative influence on formalization extent of the informal collector.
Besides, it is concluded that the additional cost hinders the formalization extent.
Moreover, the results reveal that improving the reluctance of sending WEEE to
formal recyclers will enlarge the payoff cost of both the formal recycler and informal
recycler. However, it is unclear whether the overall amount of WEEE recycled by
the formal recycler increases or not.
Accordingly, this study proposed several countermeasures to promote the formalization of informal collectors. On one hand, developing and adopting advanced technology related to formal recycling in order to decrease the additional cost of the formal
recycler comparing to informal recyclers. On the other hand, perfecting management
system mainly from two perspectives, one is regulating the sell source of recycled
materials from the market side so as to decrease the bargaining power of informal
recyclers, while the other is providing subsidy or establishing a cost-sharing system
to reduce the recycling cost of formal recyclers.
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