Price Setting for Green Design Price Setting for Green Design H. Scott Matthews and Lester B. Lave, Green Design Initiative, Carnegie Mellon University Introduction Industrial ecology says that economics can be thought of in ecological terms. The output from one process is the input to another process.
Industrial societies face increasing problems with disposing of waste, particularly hazardous waste.
At the same time, industrial societies are concerned about running out of raw materials in the future. The current industrial structure sells products to consumers who ultimately transform them into waste to be disposed of. Reuse, remanufacture, and recycling requires a more extensive interaction between consumer and producer than currently exists. New market structure is required to accommodate this interaction. First, it must estimate the benefits of incorporating reuse, remanufacturing, and recycling into the design of a green product.