Extended Producer Responsibility System Research Articles

A comparative analysis of government intervention under the EPR system: Eco-design and authorized remanufacturing

The extended producer responsibility system and government intervention are among the essential requirements for constructing sustainable economies. In a closed-loop supply chain consisting of an original equipment manufacturer (OEM) and a third-party remanufacturer (TPR), this paper develops four Stackelberg game models for four modes of government intervention under patent licensing: no intervention, tax and subsidy, tax and subsidy plus eco-design tax deduction, and eco-design tax deduction only. The impacts of the different government interventions on the optimal production decision, social welfare, and environment are analyzed and compared. The results indicate that, compared with no government intervention, government tax and subsidy decrease the supply of new products, increase supply of remanufactured products, and raise recycling rates of end-of-life products; on top of tax and subsidy, the government’s eco-design tax deduction can further increase OEM and TPR profits; the environmental impact under different government intervention depends on the ratio of the environmental impacts of remanufactured to new products and the level of eco-design effort. This study provides decision makers (i.e., OEM and TPR) and policy makers (i.e., governments) with new managerial insights on the benefits of eco-design and effective mechanisms to promote it.

The global governance of marine plastic pollution: rethinking the extended producer responsibility system

The global governance of marine plastic pollution: rethinking the extended producer responsibility system

Recycling, Material Flow, and Recycled Content Demands of Polyethylene Terephthalate (PET) Bottles towards a Circular Economy in Korea

The recycling and proper management of PET bottles is needed to avoid plastic pollution, as well as to achieve a plastic circular economy. In this study, we examined the recycling system of PET bottles and their material flows by life cycle, from production to recycling and disposal under different scenarios with reduced consumption for PET bottles. In Korea, PET bottle recycling has been managed by the extended producer responsibility system since 2003. As of 2021, annual usage of PET bottles per capita in Korea was estimated to be approximately 6.5 kg. The recycling rate of PET bottles after collection was determined to be 79% in 2021. However, recycled PET (or r-PET) from mechanical recycling is mostly used in low-grade PET applications such as short fibers, bands, and sheets. More than 112 thousand tons of r-PET chips would be needed to meet the 30% recycled content requirement in PET bottles in 2030 by regulation. Thus, there is an urgent need for high-quality secondary raw materials (i.e., food-grade) by adopting advanced sorting and recycling technologies for PET bottles with recycled content. PET bottle-to-bottle recycling practices can ensure the production of high-quality recycled materials and move Korea toward a plastic circular economy.

Developing an extended producer responsibility system for solid waste management in Jordan using multi-criteria decision-making approach.

To move from a traditional end of pipe approach into a more sustainable solid waste management system, the Jordanian Government has recently passed a set of new regulations The National Solid Waste Management Strategy has put a road map to encourage circular economy practices. One of the considered policy instruments is the adoption of the extended producer responsibility (EPR). The current study aimed to adopt a multi-criteria decision-making method to select the most convenient EPR structure within the Jordanian context. The study used analytical hierarchy process (AHP) and fuzzy AHP (FAHP) techniques to select the suitable type of producer responsibility organization (PRO) structure. A four-level hierarchy model was constructed with 4 criteria, 10 sub-criteria and 3 PRO alternatives. The analysis revealed that the legal and administrative criteria is the most important one (0.47) followed by environmental criteria (0.22), whereas the least important ones were socio-economic (0.17) and technical criteria (0.13). The most preferable PRO alternative was found to be PRO with profit. There were slight differences between all weight values under AHP and FAHP. Despite the availability of several laws, there is a need to develop the legal and administrative framework to enable the adoption of EPR in Jordan. Research should be the first step in the process of EPR system design. None of the previous studies conducted used the AHP and FAHP in assessing and selecting the EPR systems.

Does Extended Producer Responsibility System Promote Green Technological Innovation in China’s Power Battery Enterprises?

In an effort to accelerate the advancement of green and low-carbon development, China introduced the extended producer responsibility (EPR) system in 2016, mandating producers to assume responsibility for waste recycling. Notably, power battery enterprises emerged as a primary focal point within the EPR system. Consequently, the interplay between this system and the green technological innovation of enterprises has a substantial impact on the sustainable development of power battery companies. To comprehensively explore this relationship, we conducted an empirical investigation utilizing a sample comprising listed power battery enterprises in China from 2010 to 2020. Employing the difference-in-difference (DID) model, this study aims to analyze the implications of the EPR system on green technological innovation within these enterprises. The results indicate that: (1) The EPR system significantly promotes green technological innovation in power battery enterprises, leading to an increase in the quantity of green invention patents and improvement in the quality of green patents. (2) The mechanism test reveals that the EPR system can stimulate green innovation in power battery enterprises by increasing government subsidies and raising executives’ environmental awareness. The future endeavors aimed at promoting green innovation in power battery enterprises should be concentrated on four key aspects: (1) Expanding and optimizing the implementation of the EPR system to encompass a broader spectrum of enterprises. (2) Developing precise subsidy mechanisms in conjunction with the EPR system to effectively offset recycling costs and provide incentives for fostering green innovation within power battery enterprises. (3) Encouraging proactive engagement of power battery enterprises in strategic self-reform to align with the EPR system requirements and formulate comprehensive green technology innovation strategies. (4) Enhancing the awareness of innovation among executives to accelerate the development and advancement of green products. By focusing on these four crucial dimensions, the promotion of green innovation in power battery enterprises can be strategically and efficiently pursued, thus contributing to the sustainable development of the sector.

Analysis of Lifespan of Plastic Pallets and Containers in Korea Using Probability Density Function (PDF)

Pallets and containers are reused for a long period of time and are circulated and shared among consumers via a pool system. Although attempts have recently been made to convert to an EPR (Extended Producer Responsibility) system in Korea, it is difficult to calculate their mandatory recycling rates because they are treated as the same waste, even though they are clearly different from disposable consumer goods and plastic packaging materials. In this study, we tried to calculate waste generation based on the lifespan of plastic pallets and containers using the probability density function. The life distribution for each material (PE (polyethylene) and PP (polypropylene)) of pallets and containers was derived, and by applying this, the amount of waste generation from 2010 to 2027 was estimated. The Mean Time to Failure among pallets was 9.6 years for PE and 3.2 years for PP, and among containers, was 16.5 years for PE and 12.2 years for PP. Additionally, it was calculated that pallets had a waste generation rate of 67.5% to 75.1% by shipment, and containers 26.9–69.2%. These results can be used to calculate the waste generation rate when calculating the mandatory recycling rate of pallets and containers in the future. However, since pallets and containers are used second-hand, or are exported together with products after being shipped domestically, the amount flowing into recycling companies decreases, so it is considered that supplementation via material balance analysis is necessary to calculate the mandatory recycling rate.

Improving the WEEE recycling fund system in China: Multi-objective decision-making model based on EPR system

China has established a government recycling fund system based on the principle of extended producer responsibility (EPR). The principle of EPR is the key to the sustainable development of waste electrical and electronic equipment (WEEE) recycling. The implementation of the recycling fund system has been facing major problems. This article proposes a plan on refining the producer's recycling target to improve the current fund system in China. With the aim to maximize the amount of WEEE recycling, minimize the overall producer's recycling cost, and providing the best supports to the recycling industry, a multi-objective decision-making model is constructed to identify the optimum producer's recycling target for WEEE. Data from the recycling fund system and EPR pilot project of the Ministry of Industry and Information Technology are used to test the model. The results show that, under the condition that the amount of recycling is equal to the current level, the levy of recycling fund can be reduced by 20%, which can effectively drive the producers to take more responsibility in the collection and recycling of their end-of-life products. The multi-objective decision-making model for producer's recycling target provides a basis for the adjustment of China's WEEE recycling fund system policy, which will alleviate the challenge at present, and involve more producers to devote in collection systems. It also shows the alternative solution for EPR in non-fund business models in the recycling industry.

Management of Used COVID-19 Personal Protective Equipment: A Bibliometric Analysis and Literature Review

Using a science mapping approach, we analyzed the exponential increase in the number of scientific documents about the negative environmental impacts produced by waste from personal protective equipment (PPE), especially face masks, used to reduce SARS-CoV-2 transmission worldwide. Our results revealed that India, China, and Canada are leaders in this research field, which is clearly related to environmental issues, but also the solutions developed from an engineering point of view. Our analysis of the most-relevant documents in the field uncovered the considerable negative effects of PPE waste in aquatic media, its contribution to greenhouse gas emissions, effects on wildlife, etc. To reduce the negative environmental impacts of PPE waste, we need to implement innovative ecodesign strategies for their green production, including their re-use as and the use of recycling materials, but also a collaboration with the population to reduce PPE waste at its source. Both action lines could be materialized by establishing a collective, extended producer responsibility system for PPE to ensure their sustainable production and consumption. These well-implemented strategies will contribute to maintaining progress towards achieving sustainable development goals.

IMPLEMENTATION OF ACTIONS FOR EXTENDED PRODUCER RESPONSIBILITY AS A PROPOSAL TO STREAMLINE POST-CONSUMER PACKAGING MANAGEMENT SYSTEMS IN POLAND

The transposition of new regulations into national legal systems, including updated goals and requirements for the management of packaging placed on the market and packaging waste, provides a number of opportunities for the operation of post-consumer waste management systems. This publication focuses on the essence and characteristics of the system of extended producer responsibility in selected European countries. This paper identifies, on the basis of an analysis taking into account the scopes of legal, economic, physical, and informational liability, key areas of the extended producer responsibility system requiring improvements. It develops recommendations regarding the possibility of introducing changes to the functioning of the EPR system in Poland. The implementation of the improvement proposals for the EPR can significantly contribute to achieving the existing EU waste targets, as well as the ambitious new targets included in the EU Circular Economy.

Evaluation index system for the implementation of extended producer responsibility system: Chinese beverage paper‐based composite packaging manufacturers

Paper‐based composite packages, which have been widely used for beverage in modern daily life, are featured of nutrition preservation and convenience. However, it is also causing environmental problems in urban areas because of the low recycling rate. The introduction of extended producer responsibility (EPR) is helpful to improving the recycling rate of beverage paper‐based composite packaging by extending the producer's environmental‐protecting responsibility for the product from its production to its end‐of‐life treatment. To find out the optimal strategy of applying the EPR system for beverage paper‐based composite packaging, this paper is conducted based on the basic framework of the EPR system, combined with the specific requirements of the EPR System Implementation Plan promulgated by China and the Implementation Plan of the EPR System for Beverage Paper‐Based Composite Packaging. An evaluation index system for beverage paper‐based composite packaging manufacturers is constructed to perform the EPR system, including three management‐level indicators, 10 standard‐level indicators and 42 programme‐level indicators. A comprehensive evaluation method is introduced to help the producers to fulfill the extended producer responsibility. Results suggest that beverage paper‐based composite packaging producers should first fulfill the responsibility in information disclosure, ecological design and use of recycled materials.

Research on Closed-Loop Supply Chain Decision Making of Power Battery Considering Subsidy Transfer under EPR System

With new energy vehicles becoming the mainstream of new vehicles sold, the surge in user ownership has triggered a wave of power battery scrapping, and the environmental problems caused by improper power battery recycling are becoming more serious. It is essential to promote the development of the closed-loop supply chain (CLSC) of power batteries effectively through government subsidies under the extended producer responsibility (EPR) regime. Combining the EPR system with the battery manufacturer as the leader and the vehicle manufacturer and the retailer as the subordinates, this paper constructs and solves four models of different CLSC subsidy objects and analyzes the pricing of power batteries by different subsidy objects by using the Stackelberg game, as well as the profit change and profit distribution ratio of each CLSC participant. The results of the study showed: (1) when the unit subsidy is limited, the government should subsidize all the CLSC subjects as much as possible. (2) When the government subsidizes the remanufacturing of power batteries, the recycling rate of power batteries is higher, and the benefits of the CLSC are better than those of subsidizing other actors. (3) The change in government subsidy objects will not affect the profit distribution ratio of CLSC, mainly because the subsidy not only improves the recovery rate, but also improves the profitability of each entity.

Channel coordination in a closed‐loop supply chain with fairness concerns under further extended producer responsibility

AbstractThis paper proposes a further extended producer responsibility system to study the operations of the supply chain with fairness concerns. By comparing four scenarios regarding whether channel members concern fairness, we obtain the following results: the coordinated development can be accomplished for channel members when the dominant producer makes pricing decisions with more consideration for the profit of follower; both the producer and the retailer can adjust the degree of demand information disclosure in some ways to obtain more profits; the further extended producer responsibility system (FEPR) system can serve as an effective low‐carbon development measure that leads to higher emission reduction and end‐products recovery.

Circular economy practices in the waste electrical and electronic equipment (WEEE) industry: A systematic review and future research agendas

Circular economy is a sustainable economic development model. It replaces the traditional economic development model that relies heavily on resource consumption and waste generation. Circular economy is particularly important to the waste electrical and electronic equipment industry as e-waste contains toxic substances and precious metals. While previous review studies focused on specific aspects of the WEEE industry (e.g., “4R” circular economy strategies), these studies offer little details on how circular economy practices affect the development of the environment and economy in the waste electrical and electronic equipment industry. This study examines “10R” circular economy strategies to advance knowledge of the existing literature that focuses on “4R” circular economy strategies. To improve the methodology used in the previous review studies that apply subjective methods (e.g., content analysis), this paper conducts a systematic literature review on 208 studies and uses citation network analysis to examine specific circular economy practices in the waste electrical and electronic equipment industry. The citation network analysis identified five major research domains (i.e., “e-waste management systems and practices”, “e-waste legislation and its components”, “extended producer responsibility schemes”, “recycling critical materials from e-waste”, “circular economy strategies for the waste electrical and electronic equipment industry”). Based on these results, this study conducts a main path analysis to reveal ten major topics (i.e., e-waste recycling system; exploring untapped e-waste; compliance assurance of stakeholders; e-waste reverse logistics; reward and punishment mechanisms in extended producer responsibility system; verifying the rationality of product classification; recycling critical materials from urban mines; setting a specific target for preparation for reuse; “10R” strategies applied in the smart factory; consumer attitude toward remanufactured/refurbished/repurposed strategies and the resultant products) in the identified research domain. Finally, this paper proposes future research directions and provides managerial and policy implications for researchers and practitioners. • “10R” strategies for the waste electrical and electronic equipment industry. • Effect of circular economy practices on environmental and economic performance. • Related publications evolution characteristics in 2003–2020. • Five key research domains of circular economy practices and their major topics. • Research directions for future studies.

Optimal Decisions and Implementation Efficiency of the Extended Producer Responsibility System for E-Waste under Take-Back Legislations

The collection and reuse of the e-wastes have attracted increasing attention all over the world. In order to incentivize the producer to collect and recover the e-waste, more and more countries have formulated the take-back legislation with the economic or administrative instruments based on the spirit of extended producer responsibility (EPR). Facing two different types of policy instruments (economic or administrative instrument), how the take-back legislation affects the collection and reuse of the e-waste and how to ensure the efficiencies of the two types of take-back legislation have attracted the public’s attention. Therefore, this paper establishes a stylized model consisting of a monopoly manufacturer who is responsible for collection and remanufacturing under two different types of the take-back legislation. The manufacturer’s optimal production, collection, remanufacturing decisions, and optimal profit are derived using Karush–Kuhn–Tucker (KKT) conditions. Sensitivity analysis shows that stricter mandated collection rate hurts the manufacturer’s profit, but the effects of the government’s subsidy and tax on the manufacturer’s optimal decisions rely on the cost of the new product. The firm needs to adjust the cost of the new products corresponding to the specific subsidy and tax. Finally, a neutral fiscal policy is proposed to determine the government’s optimal subsidy and tax in order to ensure the consistency of the efficiencies of the two types of take-back legislation. The government should set that the ratio of the optimal tax and subsidy under the neutral fiscal policy is exactly consistent with the mandatory collection target. This policy aims to guide the manufacturer’s voluntary collection rate to meet the government’s mandated collection target and thus change the mandatory collection mode to the voluntary collection mode.

Analysis on the Optimal Recycling Path of Chinese Lead-Acid Battery under the Extended Producer Responsibility System

The pollution control problem of discarded lead-acid batteries has become increasingly prominent in China. An extended producer responsibility system must be implemented to solve the problem of recycling and utilization of waste lead batteries. Suppose the producer assumes responsibility for the entire life cycle of lead batteries. In that case, it will effectively reduce environmental pollution caused by non-compliant disposal of waste lead batteries, reduce environmental pollution, and achieve the sustainable development of lead resources. Based on the operating mechanism of the extended responsibility system for lead-acid battery producers in China, this article considers three recycling channel structures: recycling only by manufacturers (mode M), recycling by the union (mode R), and third-party recycling (mode C). This article comprehensively compares the differences between the three recycling channels. The research results show that: (1) under the EPR system, the choice of production companies is affected by the recovery rate and profit rate. (2) By comparing different recycling channel models, we found that the recovery rate of independent recycling by the manufacturer is the largest. Still, the profit rate of the manufacturer that entrusts the alliance (M) to recycle is the highest. The manufacturer can entrust to alliance or independent recycling of waste lead batteries according to the different profit rates and recovery rates. (3) From the perspective of the supply chain, independent recycling (M) by production companies or recycling (R) by the commissioned union may be the best. The choice of recycling channels for producers depends on independent recycling and commissioning alliance’ recycling costs and reuse costs.

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

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.

A Study on the Improvement Strategy for the Relevant Recycling System based on the Occurrence Status of Used Beverage Cartons

Beverage cartons are made of natural pulp and, if recycled, can be used as high-quality resources that generate high economic profits and low carbon emissions. However, as of 2020, the recycling rate for beverage cartons was 16.1%, the lowest level since the extended producer responsibility system was introduced in 2003. This study diagnosed a problem with the beverage carton recycling system and proposed a plan for improvement. Through a nationwide on-site survey (n=41), this study identified the discharge ratio of used beverage cartons by region (metropolitan city), housing type (sale, lease), discharge method (separate, mixed), collection type (daily, regular), and the current status of beverage carton-related collection and recycling companies. According to an analysis of the discharge characteristics of used beverage cartons, the proportion of aseptic cartons in densely populated areas in Seoul and other metropolitan regions was high (37.1% to 40.4%). Furthermore, the disposal rate of aseptic cartons was high in the following order : lease > sale > lease + sale. The difference in the aseptic carton waste generation rate by collection method was not statistically significant. Still, the difference in discharge type was 4.8 percent point higher than that of mixed discharge when disposed separately. According to an on-site survey of carton pack-related collection and recycling companies, the poor collection rate, low collection quality, and lack of market for recycled sanitary paper were recognized as significant challenges. Following the prospect of delivered and imported ratio of aseptic cartons raise to 50% in 2024 and 80% in 2035, this study proposed to split the separate discharge system for gable-top cartons and aseptic cartons to diversify recycled products like other foreign countries.

A Study on the Reorganization Plan of PROs according to the Expansion of EPR Items for Plastic Products

A legislative notice was announced in 2021 that 17 plastic products managed through a voluntary agreement system for more than five years would be transferred to the extended producer responsibility (EPR) system. Accordingly, related industries have been thinking about whether to transfer to the EPR system and to form a producer responsibility organization (PRO). This study investigated how the PROs should be established, including the existing five plastic packaging materials and products. It was also studied that it is desirable for product groups to be incorporated into an integrated PRO rather than a single PRO. Furthermore, the integrated PRO plan is the [3rd alternative], which is to design the PRO as the existing ① household goods (existing packaging material + add 1 new item), ② agricultural and fishery goods (existing 4 items + add 3 new items), and the newly established ③ industrial goods (6 new items), and ④ construction goods (7 new items). In addition, considering the product’s characteristics, it is suggested that the industry establishes a separate autonomous management system for ⑤ products with a long life cycle such as construction items and ⑥ returnable products such as plastic pallets.

Designing an incentive scheme for producer responsibility organization of waste tires: A MCGP cooperative game approach

Extended producer responsibility (EPR) of waste tires is usually implemented by a producer responsibility organizations (PRO) composed of a group of tire producers. As a collective EPR system, the main goals of PRO are to achieve recycling cost efficiency as well as offer incentives for all member producers to design their products for recyclability (or called eco-design). Nevertheless, current PROs for tire recycling are far from their goals and do not provide sufficient incentives because they ignore the differentiated recyclability of products from different producers and charge producers a uniform unit fee. To resolve these problems, we first create a mixed recovery decision model for tire recycling of PROs based on multi-choice goal programming (MCGP) approach towards system optimality and obtain the optimal total recovery cost. In particular, the proposed MCGP model allows for integrating a variety of different regulations under a carbon-policy regime into a single programming model through the formulated utility functions and penalty functions. This makes it easy to adjust the regulatory intensity to compromise the conflicting objectives regarding cost efficiency and carbon emission reduction. Further, recognizing the optimal total recovery cost as a baseline, a cost-sharing scheme is proposed to maintain the voluntary participation of producers for PRO as well as offer eco-design incentives for producers. This study proves that the solutions of the proposed hybrid method is more suitable for the research problem than the eminent solutions such as the Shapley value. The feasibility of the proposed hybrid model is examined via a numerical study with calibrated real-world datasets.

Extended producer responsibility system in Russia: environmental aspect in the calculation of the environmental fee

Extended producer responsibility system in Russia: environmental aspect in the calculation of the environmental fee