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A Challenge in a Governmental E-Waste Recycling Scheme

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A Challenge in a Governmental E-Waste Recycling Scheme sustainability Communication Determining Environmental Costs: A Challenge in A Governmental E-Waste Recycling Scheme Chii-pwu Cheng 1, Chun-hsu Lin 2,* , Lih-chyi Wen 2 and Tien-chin Chang 1 1 Institute of Environmental Engineering and Management, National Taipei University of Technology, Taipei 106, Taiwan; [email protected] (C.C.); [email protected] (T.C.) 2 Center for Green Economy, Chung-Hua Institution for Economic Research, Taipei 106, Taiwan; [email protected] * Correspondence: [email protected]; Tel.: +886-2-273-560-06 (ext. 509) Received: 29 July 2019; Accepted: 12 September 2019; Published: 20 September 2019 Abstract: The Extended Producer Responsibility (EPR) concept involves having producers take environmental responsibility for post-consumer products. Based on this principle, the Waste Electrical and Electronic Equipment (WEEE) Directive of the European Union, enacted in 2006, is the most representative management program in the world and the most popular recycling policy many countries follow. Taiwan’s version of EPR for WEEE recycling, set up in 1998, had a focus on recycling fees determined by a recycling fee equation. Nowadays, the equation takes into account the consideration of the environment in the designs of products, in addition to the cost needed for recycling. The environmental performance upgrades in products, encouraged by the financial incentives from these considerations, is a side-benefit of this program. In this paper, the functions of the recycling fee equation that consider environmental costs are reviewed. It was found that in spite of the difficulty in determining the real environmental costs in practice, pricing is a mechanism which helps us to consider the cost of e-waste recycling, not only in terms of labor and administration, but also environmental quality. Keywords: producer responsibility; environmental cost; e-waste; recycling scheme 1. Introduction Environmental damage from littering is the main reason for waste management efforts, which has led to the practice of take-back schemes in many countries [1]. The Extended Producer Responsibility principle (EPR) [1,2] adds environmental cost in as a portion of the sales of durable products, such as electrical and electronic equipment, sold to customers [3]. The cost of collection and recycling can be interpreted as an environmental cost, if articles are scattered in the environment [4]. Therefore, the governmental recycling system for Waste Electrical and Electronic Equipment (WEEE) in Taiwan started in 1998 with the EPR concept, which considers environmental costs caused by e-waste dumped in the environment without further treatment [5,6]. The approach of the EPR system’s operation in Taiwan is to impose the financial responsibility on producers by charging them recycling fees. Every two months, producers and importers of electrical and electronic equipment in Taiwan have to pay recycling fees, based on their domestic sales quantities and the recycling fee rates for different products, to the Recycling Fund Management Board (RFMB) of the Environmental Protection Administration of Taiwan (EPAT), the environmental authority at the cabinet level of the central government [7,8]. The fees are not only for the cost of take-back schemes and recycling, but also for articles scattered in nature without being collected for proper treatment. In 2012, the RFMB initiated the Green Recycling Fees program, which allowed producers to reduce their recycling fee payments by up to 30% if the articles sold to the market are certified with eco-labels Sustainability 2019, 11, 5156; doi:10.3390/su11195156 www.mdpi.com/journal/sustainability Sustainability 2019, 11, x FOR PEER REVIEW 2 of 11 Sustainability 2019, 11, 5156 2 of 11 In 2012, the RFMB initiated the Green Recycling Fees program, which allowed producers to reduce their recycling fee payments by up to 30% if the articles sold to the market are certified with ecoissued-labels in Taiwanissued in such Taiwan as the such Environmental as the Environmental Labels from Labels the EPAT from andthe EPAT the Water-Saving and the Water Labels-Saving and LabelsEnergy-Saving and Energy Labels-Saving from Label the Ministrys from the of EconomicMinistry of Aff Economicairs [9]. The Affairs purpose [9]. ofThe Green purpose Recycling of Green Fees Recyclingis to encourage Fees is the to greenencourage design the of green products design to facilitate of product thes recycling to facilitate process the recycling later, reducing process the later, costs reducingof recycling the operations,costs of recycling and in operations turn, reducing, and in the turn environmental, reducing the costs environmental by recycling. costs by recycling. WithWith the the fee fee-charging-charging EPR EPR system, system, which which originally originally evolved evolved from from environmental environmental cost cost considerationsconsiderations for for better better waste waste management, management, Taiwan Taiwan has hasachieved achieved a 60% a take 60%-back take-back rate of rate total of waste total andwaste created and created a mature a mature recycling recycling industry industry because because of the of the governmental governmental recycling recycling scheme scheme [10] [10.]. However,However, the the government’s government’s fee fee-charging-charging EPR EPR has has also also been been criticized criticized for for its its inefficiency inefficiency in in the the bureaucraticbureaucratic process, process, slow slow capital capital flow flow,, and and failure failure to to encourage encourage the the improvement improvement of of recycling recycling facilitiesfacilities [11,12] [11,12].. T Therefore,herefore, the the evolution evolution of of the the fee fee calculation calculation equations, equations, with with more more attention attention to to the the factorfactor of of environmental environmental costs costs,, its its impacts impacts on on the the performance performance,, and and management management of of the the governmental governmental recyclingrecycling system system are are the the focus focus of of this this paper paper.. 2.2.The The Structure Structure of of EPR EPR in in Taiwan Taiwan TheThe key key players in the EPREPR systemsystem inin Taiwan Taiwan since since 1998, 1998, the the so-called so-called “four-in-one” “four-in-one” program, program, are arecomposed composed of fourof four major major parties: parties: households households and and communities, communities, private private recyclers, recyclers, the recycling the recycling fund, fund,and local and governmentslocal governments and municipalities, and municipalities as shown, as shown in Figure in Figure1[ 13]. 1 Households [13]. Households are required are required to sort totrash, sort whiletrash, municipalitieswhile municipalities collect recyclablescollect recyclables separately separately and deliver and themdeliver to them recyclers, to recyclers, who receive who a receivesubsidy a fromsubsidy the from recycling the recycling fund to process fund to the process recycling the recycling of those collectedof those collected recyclables. recyclables. • Waste •Processing Generation Households Recycling Communities Industry Recycling Fund Municipalities • Incentives •Collection Support FigureFigure 1. 1. MainMain p playerslayers in in the the recycling recycling p programrogram in in Taiwan Taiwan.. TheThe recycling recycling fund fund is collected from producers andand managedmanaged byby thethe RFMBRFMB of of EPAT. EPAT. As As shown shown in inFigure Figure2, the2, the RFMB RFMB periodically periodically determines determines the the recycling recycling fees fees charged charged onon eacheach unitunit ofof the products requiredrequired to to be be recycled recycled b byy law. law. At At the the same same time, time, recyclers recyclers receive receive a a subsidy subsidy from from the the RFMB RFMB to to compensatecompensate for thethe cost cost of of recycling recycling operations. operations. Subsidy Subsidy fee rates,fee rates, which which differ fromdiffer product from product to product, to product,are also determinedare also determined by the RFMB. by the Therefore, RFMB. Therefore, the state-owned the state- RFMBowned of RFMB the EPAT of the plays EPAT the plays role ofthe a rolePrivate of aRecycling Private Recycling Organization Organization (PRO). Currently, (PRO). Currently, there are 33 there items are that 33 are items classified that are into classified 13 categories into 13which categories are subject which to recycling are subject [13 ].to E-waste recycling belongs [13]. toE- twowaste of thebelongs 13 categories to two ofof products:the 13 categories information of products:technology information products, suchtechnology as computers; products, and su homech as appliances,computers; suchand home as TV appliances, sets and washing such as machines. TV sets and washing machines. Sustainability 2019, 11, 5156 3 of 11 Sustainability 2019, 11, x FOR PEER REVIEW 3 of 11 Reviewing and Recycling Fee Manufacturers/Importers authorizing Paying fees Reviewing (EPR Liability) Proposing Committee fee rates Reporting Fund Accounting Recycling Fund Environmental Bank System Notification Management Protection Board Administration Applying subsidy Technical Advisory Selecting and commissioning Transferring subsidy Committee Providing Supervising tech advise Auditing & Resource Quality & Quantity Certification Certification Recycling System Groups FigureFigure 2. Recycling 2. Recycling Fund Fund Program Program Framework Framework in Taiwan. in Taiwan.
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