Developing a Circular Economy in the Retail Refrigeration Industry: The Influence of Financial Incentives, Quality Standards and Process Supporting Tools on the Behavioural Intentions to Purchase and Produce Remanufactured Refrigeration Equipment

The Circular Economy is an economic and industrial system in which resources are used for as long as possible. This typically involves businesses implementing a range of alternative business models, such as remanufacture. With the manufacture of Refrigerated Display Cabinets (RDCs) being amaterial and energy intensive process, there is scope for remanufacturing to support a more resource-efficient production of RDCs.Despite the potential, the remanufacture of RDCs in the UK is uncommon. Many Retailers and Manufacturers typically have unfavourable attitudes towards the purchase and production of remanufactured RDCs. However, more favourable attitudes could increase their Behavioural Intentions towards the purchase and production of remanufactured RDCs, which could lead to the adoption of remanufacturing across the industry. This study uses structured surveys to measure the potential impact that Financial Incentives (the Enhanced Capital Allowance), Quality Standards and Process-Enabling Tools have on changing the Behavioural Intentions towards the purchase and production of remanufactured RDCs. Participants in this study are Retailers (who purchase RDCs for retail grocery stores in the UK) and Manufacturers (who produce and sell RDCs to UK retail grocery stores). The results show that the Financial Incentives (the Enhanced Capital Allowance), Quality Standards and Process-Enabling Tools had a positive and statistically significant impact on the participants’ Behavioural Intentions towards the purchase and production of remanufactured RDCs. This suggests the importance of further research into the development of the proposed interventions with the aim to positively influence stakeholder behaviour, that will in turn support the development of the Circular Economy in the Retail Refrigeration Industry.