摘要：Recycled used lubricant oils offers the benefits of recovering base oilsprevents environment from harmful uses and protects the environment fromdisposal of used lubricant oils. It also promises to save billions of dollars ofnew base oil used in formulating new lubricant oils. It is argued that failure toensure return of used lubricant oil and poor reverse logistics is the result ofmarket failure, where the customer is not charged the true cost of using thisvaluable resource, which should include factors such as cost to theenvironment. This provides a possible economic rationale for government tointervene in the market to encourage return of used oil for recycling closer tothe optimum level. The research found that charging an amount on thepurchase of new lubricant, which would be adjusted on return of usedlubricant oil, would ensure optimum return of lubricant oil. The amountshould be high enough to discourage inappropriate users from buying theused oil. Alternatively, incentives such as free service or free replacement ofoil filter could also be used. Findings suggest that the incentives such as freeoil filter with oil replenishment or offering free car wash seems to be the mostpractical as it will also avoid the problems in handling and adjusting cashcharged for ensuring used oil return
