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EPR Reference Database

Publication type: Report

What have we learned about extended producer responsibility in the past decade? a survey of the recent EPR economic literature

Abstract/summary

The last decade has seen a substantial increase in implementation and interest in Extended Producer Responsibility (EPR) programs. While on-the-ground implementation of EPR programs has grown, an academic literature on the economics of EPR has also developed. This document provides an overview of lessons learned from this literature. It identifies key results from the literature and possible areas for further analysis, with an eye towards informing policymakers regarding the design of EPR programs. Key insights from the literature that policymakers may want to take into consideration are as follows. First, in selecting policies within the EPR framework, multi-instrument policies, such as deposit/refund, are likely to be more efficient than single instrument policies such as an advance disposal fee. Second, while collective PROs may be attractive in terms of taking advantage of economies of scale and reducing the need to monitor individual firms, care should be taken that market power is not exploited. Third, while most EPR policies provide DfE incentives, policies that directly target product characteristics (weight, recyclability, etc.) will provide the most direct incentives. Finally, though there is evidence that EPR policies can achieve their environmental goals, empirically it is still an open question which policies will achieve those goals at the least cost.

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Author(s)
Daniel Kaffine
Patrick O’Reilly
Year
2013
Publisher
Working Party on Resource Productivity and Waste
Commissioning organization
Organisation for Economic Cooperation and Development (OECD)
Number of pages
45
URL
http://spot.colorado.edu/~daka9342/OECD_EPR_KO.pdf
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