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Title Food waste, circular economy, and policy with oligopolistic retailers
ID_Doc 445
Authors Correani, L; Morganti, P; Silvestri, C; Ruggieri, A
Title Food waste, circular economy, and policy with oligopolistic retailers
Year 2023
Published
DOI 10.1016/j.jclepro.2023.137092
Abstract The food chain is intrinsically linked to agriculture and enables a transition towards a Circular Economy (CE) system and a resource efficient future. Accordingly, the development of analytical models appears particularly useful to address these challenges and to assess CE strategies. In this study, we develop a theoretical model to investigate the relationship between market structure and food waste. We consider an oligopolistic market with N differentiated firms (retailers), where each firm sells a final perishable good (food) in a context of strategic interaction. We use this model to analyse and compare two policy instruments aimed to reduce food waste, namely taxation and circular economy approach. The social welfare index, given by the sum of firms' profits and consumers' utility (surplus), is used to make this comparison. Food waste is an endogenous consequence of the interaction between competing retailers and consumers; interestingly, theoretical results suggest that the indi-vidual retailer's food waste is positively correlated with market concentration and the quality of goods. In general, circular economy shows a higher welfare than taxation especially when customers are particularly sensitive to the amount of goods available on the shelves. The study is completed by numerical simulations.
Author Keywords Food waste; Oligopoly; Circular economy; Welfare; Retailer
Index Keywords Index Keywords
Document Type Other
Open Access Open Access
Source Science Citation Index Expanded (SCI-EXPANDED)
EID WOS:000986095500001
WoS Category Green & Sustainable Science & Technology; Engineering, Environmental; Environmental Sciences
Research Area Science & Technology - Other Topics; Engineering; Environmental Sciences & Ecology
PDF https://doi.org/10.1016/j.jclepro.2023.137092
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