Selection of recycling model and investment strategy from economic and environmental perspectives

The waste material recycling generates environmental and economic benefits to industry and society, incentivizing companies to invest in recycling convenience service for recycling volume expansion. However, as multiple stakeholders and influencing factors are involved in recycling operations, it is difficult for recycling model selection and convenience service investment. To address it, this study models three recycling models using game theory based on practices: (1) settled model, (2) self-built model, and (3) dual-channel model. The equilibrium solutions of three models are solved, demonstrating that customers’ preference for the platform significantly influences recyclers’ investment strategies in convenience services. By integrating consumers’ preference for platform and recycling convenience service investments and by considering both positive and negative impacts of the recycling activities on the environment for three models, this study advances scholarship in waste recovery systems. The findings can support the design of economical and sustainable recycling policies for practitioners.