economics Practical Magic

Buying refurbished electronics might actually be worse for the planet because most people just buy them *in addition* to new ones anyway.

March 20, 2026

Original Paper

Accounting for imperfect displacement in life cycle assessment for refurbishing and remanufacturing operations

SSRN · 6438002

The Takeaway

While the 'circular economy' suggests reuse is always better, this study found that refurbished goods often act as secondary purchases rather than replacements. Crucially, when older, less efficient devices are shipped to countries with 'dirty' coal-heavy energy grids, the carbon footprint of using them quickly cancels out the environmental savings of not manufacturing a new one.

From the abstract

Refurbishing and remanufacturing are often championed for their potential to reduce environmental impacts, yet their true benefits remain a subject of debate. A primary challenge is imperfect displacement-where refurbished/remanufactured units do not fully substitute for new products-leading to rebound effects that can offset environmental gains. Recent Life Cycle Assessment (LCA) research has begun to address this through a displacement rate (DR), which compares the quantity of new products dis