Evaluation of a new extended producer responsibility mode for WEEE based on a supply chain scheme

Abstract

China is promoting extended producer responsibility (EPR) for waste electrical and electronic equipment (WEEE). However, the present EPR policy in China, in fund mode, has been facing the challenge of fund deficit severely since 2016. A new sustainable EPR mode is needed to solve this problem. In this paper, a mandatory recycling EPR mode is designed and studied as a potential solution. A quantitative evaluation system is innovatively established to evaluate the effectiveness of the mode and to compare the new mode to the present mode. The evaluation system first summarizes a supply chain scheme of electrical and electronic equipment (EEE) in each mode, which describes the life cycle of China's EEE from products to wastes to renewed resources. The supply chain schemes are complex since they contain five to six different stakeholders. Then classical game theory models are applied to the supply chain scheme based on the interaction among different stakeholders to calculate the indicators used for evaluation. At last, the two modes are compared in terms of economic, environmental and social effects in the case of the air-conditioner market. Results show the mandatory recycling mode is similar to the fund mode in economic and social effects. It is more financially sustainable, capable of enabling a higher recycling rate and more beneficial to certified recycling companies. Therefore, applying the recycling obligation mode in the future to maintain the EPR system is recommended.