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

40
29/09/09
system. Another is Carpet America Recovery Effort (CARE), created by an
agreement that arose from a 2002 MOU between manufacturers, several
state governments and the US EPA. The memorandum set voluntary recycling
rate goals for carpet to be reached by 2012;
� Advance recycling fees – An ARF – which was originally referred to as an
advance disposal fee, or ADF – is a tax assessed on product sales and often
used to cover the cost of recycling. ARFs are often assessed per unit of the
product sold but can also be assessed on the basis of weight. ARFs may be
visible to the consumer on the purchase of a product, as a separate line on the
bill, or imposed upstream on producers and later incorporated in the sales
price; and
� ARF combined with a recycling subsidy – An ARF raises money that can be
used in a variety of ways. The incentive effects of the policy depend greatly on
both the type of ARF and the use of revenues. A ‘back-end’ recycling subsidy –
either a subsidy per unit of the product recycled or unit weight of material
recycled – leads to quite a different policy instrument than one in which ARF
revenues are used to cover waste management cost or infrastructure costs in
a lump-sum fashion. California’s used oil programme, the western Canada
used oil programme, lead-acid batter programmes in several US states, and
California’s e-waste programme are all ARF/recycling subsidy programs.
All of these policy instruments make the producer financially or physically responsible
for the end-of-life environmental impacts of his product. In this sense, they could all
be considered EPR. However, they have very different incentive effects and ultimately
may lead to different environmental outcomes, and the costs of the instrument may
differ widely.
Other non-EPR policy instruments can lead to similar outcomes but do not focus
upstream on producers. To illustrate the contrast, four such non-EPR instruments are
outlined below
� Landfill bans – Many US states and European countries ban disposal of
particular items in landfills (or incinerators);
� ‘Pay as you throw’ pricing of waste collection/disposal – A large number of
Irish authorities, as well as many municipalities in the EU, more than 4,000
communities in the US, all municipalities in South Korea and many other
municipalities in other countries besides, charge for the collection and
management of waste using a variable fee element. In some countries, end-oflife
fees are charged for specific items that are difficult to dispose of. None of
these policies are aimed at the producer, and so do not qualify as EPR, but
they do have some effects on waste generation and recycling, usually through
affecting consumption decisions and through changing citizens’ behaviour.
� Recycling subsidies – The government may raise funds in ways that are not
ARFs/ADFs, and subsidize recycling. The government could make a payment
per unit or kg of material recycled, or it could make lump-sum grants to
communities or recycling centres. Such grants are quite common in the US.
Whether the subsidy is per unit volume, per unit of weight, or a one time lump
sum will have different effects; and