Producer-paid deposit refund system in recycling markets
- Author Chang, Ki-Bok
- Researchers
-
Date
1999-11-30
ABSTRACT
Producer-Paid Deposit-Refund System
in Recycling Markets
Ki-Bok Chang, Yong-Gun Kim, Tae-Uk Park,
Young-Sun Lee, Kwang-Kyu Kang,
Korea Environment Institute, Seoul, Korea
This study focuses on the economics of waste management, with an emphasis on post-consumer waste which belong to the items for producer-paid cash deposit such as Carton Pak, Metallic Can, Glass Bottle, Pet Bottle, Tire, Lubricant, Battery, and Household Electric Appliances. The primary concern are to investigate the waste management cost structure and to provide the policy maker for the cost information on each of the deposit items.
For this purpose, the present situation of waste stream (disposal, collection, transport, processing and recycling) was surveyed at first and the waste management cost for each step was estimated. In the course of cost calculation, labor cost, welfare cost, allowance for severance liability, vehicle cost, fuel cost, insurance cost related to vehicle, purchase cost of land, electricity, waterworks cost and general management cost are considered as cost factors. It is found that the deposit rate was below 50% of actual cost for almost all of items.
In addition, how the performance of waste retreatment was affected by deposit rate level was analyzed by using both the refund results and the estimated costs. It was shown that the deposit rates are very closely related to the performance in recycling markets. On the basis of this analysis, the proper deposit-refund rates to accomplish the policy target were suggested. It also present
Producer-Paid Deposit-Refund System
in Recycling Markets
Ki-Bok Chang, Yong-Gun Kim, Tae-Uk Park,
Young-Sun Lee, Kwang-Kyu Kang,
Korea Environment Institute, Seoul, Korea
This study focuses on the economics of waste management, with an emphasis on post-consumer waste which belong to the items for producer-paid cash deposit such as Carton Pak, Metallic Can, Glass Bottle, Pet Bottle, Tire, Lubricant, Battery, and Household Electric Appliances. The primary concern are to investigate the waste management cost structure and to provide the policy maker for the cost information on each of the deposit items.
For this purpose, the present situation of waste stream (disposal, collection, transport, processing and recycling) was surveyed at first and the waste management cost for each step was estimated. In the course of cost calculation, labor cost, welfare cost, allowance for severance liability, vehicle cost, fuel cost, insurance cost related to vehicle, purchase cost of land, electricity, waterworks cost and general management cost are considered as cost factors. It is found that the deposit rate was below 50% of actual cost for almost all of items.
In addition, how the performance of waste retreatment was affected by deposit rate level was analyzed by using both the refund results and the estimated costs. It was shown that the deposit rates are very closely related to the performance in recycling markets. On the basis of this analysis, the proper deposit-refund rates to accomplish the policy target were suggested. It also present