OECD Environment Working Papers
This series is designed to make available to a wider readership selected studies on environmental issues prepared for use within the OECD. Authorship is usually collective, but principal authors are named. The papers are generally available only in their original language English or French with a summary in the other if available.
- ISSN: 19970900 (online)
- https://doi.org/10.1787/19970900
Modulated fees for Extended Producer Responsibility schemes (EPR)
One of the key objectives of Extended Producer Responsibility (EPR) is to instigate design for the environment. In collective EPR schemes, the fee schedule set by Producer Responsibility Organisations (PROs) is typically quite simple and provides weak incentives for design change by producers. Fee modulation, changing fees paid by producers in a collective EPR scheme based on product design, can provide producers with stronger design incentives, but adds complexity to the system. The paper defines a classification for fee modulation (by criteria and methodology) and discusses potential challenges and opportunities. It concludes with key policy insights that can further stimulate this emerging policy approach.
Keywords: product stewardship, waste management, sustainable consumption, resource efficiency, extended producer responsibility, circular economy
JEL:
O14: Economic Development, Innovation, Technological Change, and Growth / Economic Development / Industrialization; Manufacturing and Service Industries; Choice of Technology;
Q56: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth;
Q53: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling;
L15: Industrial Organization / Market Structure, Firm Strategy, and Market Performance / Information and Product Quality; Standardization and Compatibility;
Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: Government Policy
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