WASTE RECYCLING POLICIES UNDER EXTENDED PRODUCER RESPONSIBILITY: TAKE-BACK MANDATE VERSUS DEPOSIT-REFUND

Tsung-Hsiu Tsai (), Shih-Jye Wu () and Hong Hwang ()
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Tsung-Hsiu Tsai: Department of Applied Economics, National Kaohsiung University, 700 Kaohsiung University Road, Kaohsiung 811, Taiwan
Shih-Jye Wu: Department of Political Economy, National Sun Yat-Sen University, Taiwan
Hong Hwang: Department of Economics, National Taiwan University and RCHSS, Academia Sinica; 21 Hsu Chow Road, Taipei 10055, Taiwan

Global Journal of Economics (GJE), 2013, vol. 02, issue 02, 1-10

Abstract: Take-back mandate and deposit-refund are the most two established waste recycling policies that are consistent with the extended producer responsibility (EPR) principle. In the take-back mandate, manufacturers have to achieve a mandatory recycling target set up by the authority. In the deposit-refund, manufacturers pay a waste disposal fee (or an output tax) to the authority, which then uses the fee to subsidize the recycling sector. This paper compares these two policies and finds that their relative performance in terms of recycling rate is crucially dependent on the recycling technological efficiency. The recycling rate is higher (lower) under the deposit-refund than the take-back mandate if recycling is relatively efficient (inefficient).

Keywords: Extended producer responsibility; take-back mandate; deposit-refund and recycling rates; Q53; Q58 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (3)

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DOI: 10.1142/S2251361213500055

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