Deposit-refund systems

The Economic Instruments database, created in close collaboration between the OECD and the EEA, contains information on the use of economic instruments such as environmentally-related taxes and charges, environmentally motivated subsidies, tradable permits, and deposit refund systems. It also outlines voluntary policy approaches such as environmental agreements negotiated with industiy, and public programs in which firms can volunteer to participate. 

Deposit refund systems involving a refundable deposit paid on potentially polluting products. 

Germany Packaging 64% plastic recycling Mandatory deposit/ refund system. DSD system responsible for collection and recovery of packaging. 

Deposit-refund systems Combination of charges subsidies to provide incentives... 

The existence of bottle deposit legislation continues to be an important factor in PET recycling. It was estimated that, in 1997, 54% of the PET soft drink bottles recycled came from bottle-bill states, while these states accounted for only 29% of the population. Recycling rates for soft drink bottles in deposit states range from 76 to 90%. It should be noted that the low end represents California, which has a bottle refund system rather than a true deposit. The monetary incentive in California is lower than in true deposit states, and the refund system is less convenient. 

The consumer pays a deposit, usually 5 cents, when buying the container and then receives a refund of that fee when the bottle is returned to a designated collection point. In most cases, any retailer that sells beverages of that type is obligated to accept the returns and refund the deposit. The majority of states provide for a handling fee for the retailer to at least partially offset the costs of managing the system. 

Hawaii s system is the newest, going into effect Jan. 1, 2005. It covers nonalcoholic drinks, except for milk and dairy products, and certain alcoholic drinks (beer, malt beverages, mixed spirits, and mixed wine) that are sold in aluminum, PET, or HDPE containers of 64 oz capacity or less. In addition to the 5-cent deposit, consumers pay a non-refund-able 1-cent container fee. As in California, containers must be returned to redemption centers. 

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