Analysis of the Driving Factors of the Extended Producer Responsibility System in China’s Tire Industry

Abstract

The effective treatment of wrap tires could mitigate black pollution, reduce carbon emission, and supply risks. The Extended Producer Responsibility (EPR) system is an effective way to deal with the problems aroused from wrap tires in some countries. In order to analyze the driving factors for the EPR system in the Chinese tire industry, this study first identifies the key driving factors based on literature analysis, expert interviews, and field research. And then, using the grey decision-making and trial evaluation laboratory (Grey-DEMATEL) method, the interrelationships among these factors were quantified analyzed. We find that the causal factor is to “strengthen the service function of dealers and service providers and improve the satisfaction of sales channels.” Finally, sensitivity analysis was performed to ensure the robustness of the results. Conclusions are summarized below. If the implementation of the EPR system for tire companies can promote the sales of new tires, achieving the economic and environmental benefits must be the most critical factor. The effect factor is to fulfill social responsibility and achieve the brand effect. This result is in line with the original intention of tire companies to fulfill social responsibility and realize resource recycling. The key factors are related to policy guidance and regulations at the national level. And managerial implications are suggested for promoting the EPR system in China tire industry.