Economic benefits tied to ecodesign

This paper reports results of an empirical study conducted to assess the profitability of ecodesigned products. Indeed, the advantages related to ecodesign are numerous according to the literature on the subject. Not only is it considered to be an efficient environmental approach, it is also said to carry a number of economic advantages for the firms adopting it. Among these advantages, the potential reduction of costs and an increase in revenues are the most important drivers. Nevertheless, the economic benefits have not been demonstrated, only indicated as a potential outcome. The main purpose of the study was to assess the economic impact of ecodesigned products and to compare the results of French companies with those of Quebec.Semi-structured interviews were conducted with 30 firms on their related ecodesign experience (15 in France, 15 in Quebec), the subsequent results were reached pertaining to the economic benefits tied to such an approach. In 24 cases, firms increased their profits with ecodesigned products. In three cases, profits are equivalent and in the three remaining cases, it is not obvious that the increased revenues compensate for the reduction of margin. French companies were found to be more profitable than the Quebec cases; this can be explained by the fact that French companies have a more systemic approach and therefore manage to make cost savings at several stages in the product life-cycle. We can conclude that the most important aspects to consider when getting involved in an ecodesign project is to focus on increased functionality of the product and to seek environmental and economic improvement on as many life-cycle stages as possible.