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The Utilization-Focused Service Economy: Resource Efficiency and Product-Life Extension
Pages 178-190

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From page 178...
... The Utilization-Focused Service Economy: Resource Efficiency and Product-Life Extension WALTER R STAHEL A key difference between the industrial economy and the service economy is that the first gives value to products that exist materially and are exchanged, whereas value in the service economy is more closely attributed to the performance and real use of products integrated into a system.
From page 179...
... The recycling of materials means simply closing the loop between postuse waste (supply) and production (resource demand)
From page 181...
... One important difference is that the smaller the loop, the more profitable it is (Table 1~. It could therefore be expected that in a free market economy, manufacturers, guided by the "invisible hand," would jump to develop opportunities for reusing goods, without even looking at recycling.
From page 183...
... RECYCLING The nice thing about the recycling of materials is not its economic attractiveness, but the fact that it carries a limited product and material life-cycle liability. The liability "from cradle to grave" that is so fashionable today is really "for cradle and grave"; it excludes unlimited use liability as well as the obligation to reuse
From page 184...
... L System is rented . investors · apartment · hotels · hotel room · taxi owners Service is rented · taxi S Owner is fleet and Fleet managers All risks for a period of time none E maintenance manager · railways determined and negotiated between L · airlines producer and Beet manager L System utilization is I sold N · transport G · telecom s 1 ^" 1 1 T E M U Owner is producer, Manufacturers All risks for an none T Beet and maintenance .
From page 185...
... · white goods · clothes · computers R Owner is fleet manager Fleet manager seeks Product-life extension of components E most advantageous Re-use N Product is rented cost-performance (household waste) T · cars ratio, which also A involves speculation L System is rented on tax depreciation · apartment rules.
From page 186...
... According to our reasoning that "the smaller the loop, the more profitable," these commercial strategies are even more promising than product-life extension! In addition, most of these strategies increase resource efficiency; that is, they greatly reduce the amount of resources needed to produce a given result (e.g., grams of resource per wash cycle in washing machines)
From page 187...
... _ _* en 3 no, / flows of secondary materials B1 Re-use B2 Repair B3 Reconditioning, remanufacturing B4 Technological upgrading Cl to C4 Similar to B1 to B4 Vl Selling the utilization of goods V2 V3 Shared, mutual or multiple utilization Selling quality control services instead of selling goods L I FIGURE 5 Waste prevention strategies of a utilization-oriented service economy.
From page 188...
... . · User standardization of man-machine interfaces (for example, the standardized flight deck of modern airliners, imposed by the aircraft leasing companies, has shown the immense advantage of this approach with regard to crew cost and maintenance reliability and cost, with savings of $250,000 to $400,000 per aircraft)
From page 189...
... However, this other person may be at the other side of the globe and not even know the product exists, let alone that it is thrown away in working order and in large quantities. TO SUMMARIZE The reuse of goods, through long-life product design, product-life extension services, and strategies intensifying product use, is economically and ecologically superior to the recycling of materials.
From page 190...
... 1991. Langlebigkeit und Materialrecycling - Strategien zur Vermeidung von Abfallen im Bereich de Produke.


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