Fair sharing and eco-efficiency in green responsibility and green marketing policy

Recent regulations often mandate the recycling of scrap products, especially electrical wastes. This study demonstrates how this end-of-pipe enforcement can be converted to an effective policy tool in improving product design towards green product. We show that collective recycling can enhance producer responsibility whilst being affordable for coalition participants by adopting the proposed two-part allocation scheme, which is a particular solution of the underlying cooperative game and is closer to the nucleolus than the Owen set. Practically, our scheme is easier to implement than other core solutions. This scheme can establish institutional trust and promote environmental quality for companies participating in a recycling coalition. The goal of promoting green market is achieved through the implicit cooperation of participating companies.