This research explores the influence of the recycling efficiency (RE) on the production function (using Cost of material, Wage and Salaries, Operating expense and Research & development, Property, plant and Equipment as a proxied) of Indian Automobile firm. The research is undertaken using the lens of Theory of Constraints and Neoclassical Theory of Production. This study observes linear & non-linear associations between the variables. Quantile panel data regression analysis (QPDRA) is employed to evaluate the association between the RE and dynamic of production function. Data from 31 automobile firms in India during 2012 to 2023 years are combined for the study. This research result reveals that in linear model at all quantile the RE have a positive and significant effect on the whole element of production function. Whereas in quadratic model, the RE is positively significant at all quantile with Cost of material however, RE is positively significant with Wage and Salaries, Operating expense and Research & development, Property, plant and Equipment at moderate and higher quantile. The results hold insights for automobile makers and policymakers to improve resource utilization plans, streamline operational efficiency, and invest in environmentally friendly manufacturing techniques in order to transition towards a RE as well as enhance competitiveness in the automobile industry. We do not detect any paper reporting the linear & non-linear association where RE and production function are assessed in Indian automotive firms. The research’s finding can usher the Indian businesses, outlining a workable structure for highlighting the value of RE in production. Consequently, this paper guarantees novelty and multiple contributions.
Agarwal et al. (Mon,) studied this question.