Assessing the impact of EU policies on recycling supply chain: a system dynamics perspective on advancing packaging recycling capacity

Tiep Nguyen, Truong Van Nguyen, Li Zhou (), Quang Huy Duong and Petros Ieromonachou
Additional contact information
Tiep Nguyen: Westcon-Comstor
Truong Van Nguyen: Greenovation Solutions LTD
Li Zhou: University of Greenwich, Greenwich Business School
Quang Huy Duong: University of Greenwich, Greenwich Business School
Petros Ieromonachou: University of Greenwich, Greenwich Business School

Annals of Operations Research, 2025, vol. 355, issue 2, No 22, 2017-2069

Abstract: Abstract Recycling stands as a crucial strategy in mitigating climate change and advancing towards carbon neutrality. Within the European Union (EU), the development of a resilient recycling supply chain is of paramount importance, particularly in response to global disruptions such as the widespread ban on solid waste imports by numerous countries like China, Malaysia, Thailand, and Vietnam. Such disruptions have exposed the vulnerabilities of EU member states, notably their overreliance on waste export and limited domestic recycling capacities. This study integrates primary data from diverse public sources into a system dynamics simulation model to assess the effectiveness of three policy types used to enhance EU domestic recycling capacities: Innovation-focused (IF), Subsidy-focused, and Market-based (MB) policies. Our findings show that IF policies exert the most considerable impact in the short term and continue to play a crucial role in the EU’s recycling capacity expansion over the medium and long term. Conversely, MB policies are identified as most effective for immediate capacity enhancement in response to abrupt disruptions. Finally, the result suggests the optimal policy mix where 84% government resources should be allocated to IF policies and 16% to MB policies to ensure the EU achieves the deliberate balance between short-term market stabilisation and long-term transformation of its domestic recycling capacity for economic, environmental, and social sustainability. This research represents a pioneering effort in examining the efficacy of a diverse array of policy types within an optimised mix, thereby encompassing a broader range of policy considerations.

Keywords: Government policies; Recycling supply chain; Waste management capacity; Packaging recycling; System dynamics (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10479-024-06438-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:annopr:v:355:y:2025:i:2:d:10.1007_s10479-024-06438-y

Ordering information: This journal article can be ordered from
http://www.springer.com/journal/10479

DOI: 10.1007/s10479-024-06438-y

Access Statistics for this article

Annals of Operations Research is currently edited by Endre Boros

More articles in Annals of Operations Research from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().