Recycling Charge and Subsidy for Waste Packaging Containers in Taiwan

"Under the 4-in-1 recycling system, Taiwan producers and importers who using packaging containers have responsibility to pay the recycling fees for recycling the waste packaging containers they produced or imported; while the collectors/recycling plants who collect/sort/recover waste packaging containers receive subsidy for conducting recycling. A reasonable pricing for recycling charge and subsidy is a way for sustainability of the recycling. The objective of this study is to provide an amending mechanism for product charge and recycling subsidy in response to the social economic changes. This study employs a regression analysis and cost adjusting model to link the factors used for calculating product charge and recycling subsidy on recycling waste packaging containers with socio-economic indicators, raw material prices, wholesale prices, and secondary material prices. Study results provide estimated models to EPA in Taiwan for amending product charge and recycling subsidy in response to the social economic changes.IntroductionUnder ""4-in-1"" recycling system in Taiwan, waste packaging containers are officially announced to be recycled. The waste packaging containers announced to be recycled include iron cans, aluminum cans, glass bottles, plastic containers, paper containers, aluminum foiled paper packs. In order to compensate the recycling system, EPA charges associated manufacturers and importers for recycling fee and subsidies recyclers to create the economic incentive for raising recycling performance. Basically, the budget for subsidy recyclers is from the recycling charge. That means if we want to increase recycling efficiency by increasing subsidy to recyclers then the manufacturers and importers have to pay more for reaching financial balance of recycling foundation. The benefit of recyclers and fee payers are always conflicted. The recycling charge and subsidy is thus argued by fee payers and subsidy receivers all the time. A reasonable pricing for recycling charge and subsidy is the only way to keep the recycling system sustainable. Moreover, a suitable mechanism has to be changed along with the changing social economic condition. The recycling performances and effectiveness of this recycling system is also highly dependent on the pricing mechanism. This study intends to provide an amending mechanism for product charge and recycling subsidy in response to the social economic change. Related previous studies about recycling system in Taiwan with its performance include Hsu and Kuo (2002, 2005), Bor, Chien, and Hsu (2004) and Hsu (1999). Hsu and Kuo [1] estimated total production values of recycling and evaluated the performance of recycling performance based upon the estimated production values."