Turning waste into by-product

Turning waste into by-product

by Deishin Lee

Part of Working paper / Harvard Business School -- 07-098

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We study the competitive and welfare implications when a manufacturer converts its waste stream into a useful and saleable by-product. The term "by-product synergy" has been coined to describe this practice. By converting waste into by-product, the firm not only reduces its waste disposal cost and potentially increases revenue, it may reduce its environmental impact by decreasing waste volume.

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