Reverse Logistics and Circular Economy Approach to Automotive Oil Waste Management in Panama

Abstract

The accelerated expansion of Panama’s automotive sector has intensified the generation of used lubricating oils, classified as hazardous waste due to their heavy metal and hydrocarbon content. Although regulatory frameworks exist, compliance among workshops and service centers remains limited, creating significant environmental and public health risks. This research conducts an exploratory case study of a representative automotive service company in Panama City to examine logistical, economic, and regulatory barriers in oil waste management. Building on best international practices and circular economy principles, a strategic reverse logistics model is developed to optimize collection, treatment, and final disposal processes. The proposed model demonstrates how reverse logistics can transform hazardous oil waste management into a driver of environmental protection, regulatory compliance, and economic efficiency. The findings highlight the potential of sustainable reverse logistics systems to strengthen Panama’s automotive sector while contributing to regional sustainability goals.