Innovative business models in ocean-bound plastic recycling
Opher Baron1, Gonzalo Romero1, Zhuoluo Zhang2, Sean Xiang Zhou2
1Rotman School of Management, University of Toronto, Canada; 2CUHK Business School, The Chinese University of Hong Kong (CUHK), Shatin, N.T., Hong Kong
Discussant: Robert Swinney (Duke University)
30 million tons of plastic reach the ocean each year, most from developing countries. We study novel business models to address this problem. Firms profitably recycle plastic to reduce ocean pollution while positively impacting local communities. They sell (a) plastic offsets and (b) segregated plastic. We analyze a supply chain model of (a), (b) or both. Adopting both attains larger environmental and social impacts and profitability. We use empirical data to unveil additional insights.