Right to Repair: Pricing, Welfare, and Environmental Implications.

This article analyzes the economic, welfare, and environmental implications of the "right-to-repair" (RTR) legislation, which mandates manufacturers to provide repair information, tools, and parts to facilitate independent consumer repairs. Using an analytical model of a monopolistic manufacturer selling a finitely durable product, the study finds that while RTR legislation reduces independent repair costs, manufacturers respond strategically by adjusting new product and repair prices, sometimes lowering and other times raising them depending on production costs. These pricing adjustments can lead to nonmonotone effects on consumer surplus, social welfare, and environmental impact, including scenarios where RTR harms manufacturers, consumers, and the environment simultaneously. The research highlights that the environmental benefits of RTR depend on product characteristics and life-cycle phases, with potential increases in production and disposal impacts offsetting gains from extended product use, thereby urging policymakers to consider the interconnected dynamics of repair and product markets when evaluating RTR legislation.