The extended producer responsibility (EPR) has become a focal strategy for improving the efficient use of resources and reducing the environmental burden. Carpet recycling is a case of the market-based EPR approach implemented in the United States. Historically, public and private sectors have reached an agreement on building a voluntary carpet recycling system by initiating business-driven recycling programs that fit the individual strategies of firms. This institutional context has promoted diversified recycling systems across the U.S including the vertically integrated or out-sourced recycling systems. The study strives to understand how the economic and environmental impact would differ according to responsible firm’s strategies under the principle of voluntary extended producer responsibility. Specifically, we evaluate the life-cycle impact of carpet recycling systems through environmental input-output modeling at a regional scale. The simulation compares the life-cycle impacts between a vertically-integrated recycling system of production of reclaimed nylon 6 fiber and an out-sourced recycling system of production of recycled carpet padding. The result demonstrates the benefits of energy savings and greenhouse gas emissions significantly differ according to recycling systems. A large portion of environmental benefits is attributed to the energy savings in the process of reclaiming nylon 6 of the vertically integrated system.