A new study into ways of increasing the use of post-consumer recycled materials (PCR) recommends a ‘freebate’ model over materials taxation schemes.
The report Demand Recycled: Policy Options for Increasing the Demand for Post-Consumer Recycled Materials, commissioned by the Resource Association and WWF-UK, analyses a range of policy options and sets out fresh thinking on the likely effectiveness of various policy interventions.
It reviews the approaches used to date to increase recycling, investigates the causes of market failure and considers a wide range of potential policy measures to enhance the market for recycled material. It then investigates in detail a short-list of four types of policy measures to increase demand: materials taxation; a fee-rebate (or ‘feebate’) system; tradable credits and the establishment of a single Producer Responsibility organisation.
It recommends further consideration of a ‘feebate’ system as the most attractive policy option. It rejects materials taxation based on the complexity of delivery. The report suggests that a single compliance scheme and single organisation for producer responsibility would be complementary to any policy option used to increase demand for PCR.
The feebate scheme would comprise a levy on all packaging which is refunded to organisations demonstrating their use of PCR through the number of certified credits they hold. The system is favoured due to its versatility in design, the reduced administrative complexity relative to the tax-based measure, and the stability of the incentive it gives.
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