Analysis of Social Cost Internalization and Investment Valuation of Reverse Logistics

With increased environmental concerns over the past decade, there has been growing interest in reverse logistics by recognizing issue of environmental pollution associated with used products and manufacturing-induced wastes. With the view of value creation from reverse logistics system and considering social cost impact, this paper analyzes the economic feasible conditions of reverse logistics marketization by using economic methodologies. To promote reverse logistics implementation the necessity of regulations and favorite policies enforced by government is discussed, and a quantitative analysis with a numerical illustration on reverse logistics investment valuation is presented as well.