International Review of Waste Management Policy - Department of ...

Following a poll in 2004, it became clear that the percentage of population who think
“the Green Dot is a good thing” had risen from 27 % in 1992 to 67 % in 2004 (and
has risen to 89% in 2006). 274 The percentage of the population who think negatively
about the Green Dot system fell from 52 % in 1992 to 20 % in 2004 (and has fallen
to 8% in 2006). 275 Therefore, many years after implementation of the DSD, such
arguments have become irrelevant for the majority of the population.
Nevertheless, it should be mentioned that social implications could often be found in
housing areas dominated by large multi-occupancy residential buildings. In these
areas the single household is not always rewarded for its contribution to waste
prevention and recycling because the other households in the same building might
not be so concerned about waste separation.
Regarding the distributional consequences, at the beginning arguments against the
DSD were focused around issues of “monopoly” and “inefficiency”. But the debate
was mostly polemical and triggered by self-interest on the part of the different parties.
There were some scandals in the early years of the system (recycling of green dot
packaging waste in inappropriate plants overseas) and these contributed to damage
the image of the DSD in the media.
Irrespective of this opposition, the large retailers increasingly demanded the use of
the Green Dot by their suppliers. Suppliers refusing to do so had to risk losing their
customers. The retailers had a strong interest in the build-up, and function of, the
DSD because otherwise they had to install the take-back of packaging in their stores,
which they wanted to avoid on the basis of cost. The collective pressure mechanism
of the packaging Ordinance worked well in the case of the large retailers (a small
number of companies have a market share of more than 80 % in the food sector, and
the market concentration is even greater in the non-food sector).
The food sector is the most important for business to consumer packaging waste. In
Germany consumers still have quite a strong influence over food retailers.
Despite the fact that large companies in this sector are well known and very
prominent in the market, the market concentration is quite low and large companies
are in competition in the food sector. Therefore it is very difficult for the companies to
transfer the cost of the Green Dot system to the consumers. On the other hand this
means an incentive for the suppliers to act in the spirit of producer responsibility by
minimizing packaging waste.
Despite this the DSD claims a 36 % reduction of its overall costs (and so prices)
between 1998 and 2006 following the implementation of innovative technologies
and better contracts with the different recycling partners resulted. 276
274 See: forsa, Gesellschaft für Sozialforschung und statistische Analysen mbH, Verbraucherbefragung
zum Thema Umweltbewusstsein, 25. April 2006 (Doc. P6570/16336 Sr/Sc).
275 See “Study Environment 2004“, Institut für Demoskopie Allensbach, 2004; forsa (see Fn 274).
276 www.gruener-punkt.de ‘What are the costs of the Green Dot?’
259
International Review of Waste Policy: Annexes