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A Comparative Study on Economic Instruments Promoting Waste Prevention Final Report to Bruxelles Environnement

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A Comparative Study on Economic Instruments Promoting Waste Prevention Final Report to Bruxelles Environnement A Comparative Study on Economic Instruments Promoting Waste Prevention Final Report to Bruxelles Environnement Authors: Dr Dominic Hogg Dr Chris Sherrington Thomas Vergunst 16 December 2011 i Final Report for: Françoise Bonnet, Bruxelles Environnement Prepared by: Chris Sherrington (Project Manager) Dominic Hogg (Project Director) Thomas Vergunst Approved by: (Project Director) Contact Details Eunomia Research & Consulting Ltd 37 Queen Square Bristol BS1 4QS United Kingdom Tel: +44 (0)117 9172250 Fax: +44 (0)8717 142942 Web: www.eunomia.co.uk Disclaimer Eunomia Research & Consulting has taken due care in the preparation of this report to ensure that all facts and analysis presented are as accurate as possible within the scope of the project. However no guarantee is provided in respect of the information presented, and Eunomia Research & Consulting is not responsible for decisions or actions taken on the basis of the content of this report. ii Contents A Comparative Study on Economic Instruments Promoting Waste Prevention.......................i Final Report to Bruxelles Environnement.................................................................................i Authors: ....................................................................................................................................i Dr Dominic Hogg........................................................................................................................i Dr Chris Sherrington..................................................................................................................i Thomas Vergunst......................................................................................................................i 16 December 2011..................................................................................................................i Contents..................................................................................................................................iii 1.0 Introduction ........................................................................................................................ 1 2.0 Inventory ............................................................................................................................. 1 2.1 Taxes, Fees and Charges ...................................................................................................... 4 2.2 Tradable Permit Systems ...................................................................................................... 5 2.3 Deposit-Refund Systems ....................................................................................................... 6 2.4 Subsidies ................................................................................................................................ 7 2.5 Green Procurement ............................................................................................................... 7 3.0 Advantages & Disadvantages of Each Instrument Type .................................................... 9 3.1 Taxes, Fees & Charges .......................................................................................................... 9 3.2 Tradable Permit Systems .................................................................................................... 12 3.3 Deposit-Refund Systems ..................................................................................................... 14 3.4 Subsidies .............................................................................................................................. 14 3.5 Green Procurement ............................................................................................................. 15 4.0 Instruments for Further Assessment ............................................................................... 18 4.1 Selection Criteria ................................................................................................................. 18 4.2 Short-listed Instruments ..................................................................................................... 20 4.3 Instruments Chosen for Analysis ........................................................................................ 26 4.3.1 Direct & Variable Rate (DVR) Charging ........................................................................ 26 4.3.2 Product Taxes / Fees / Charges .................................................................................. 26 4.3.3 Subsidies for Products .................................................................................................. 28 4.3.4 Deposit-Refund Systems for Beverage Containers ..................................................... 28 4.3.5 Packaging Tax/Fee/Charge .......................................................................................... 29 4.3.6 Variable VAT Charge ...................................................................................................... 29 4.4 Instruments not Chosen for Analysis ................................................................................ 30 4.4.1 Subsidised Home Composting Schemes ..................................................................... 30 4.4.2 Green Procurement ....................................................................................................... 30 iii 4.4.3 Disposal Tax ................................................................................................................... 31 4.4.4 Tradable Permit Systems .............................................................................................. 31 4.4.5 Deposit-Refund System for Products ........................................................................... 32 4.4.6 Waste Prevention Subsidies ......................................................................................... 32 4.4.7 Loyalty Card Schemes ................................................................................................... 33 5.0 Analysis of Impacts .......................................................................................................... 35 6.0 Direct & Variable Rate (DVR) Charging ............................................................................ 36 6.1 Case Studies ........................................................................................................................ 38 6.1.1 Bjuv, Sweden ................................................................................................................. 38 6.1.2 Landkreis Schweinfurt .................................................................................................. 42 6.2 Evidence of Impacts ............................................................................................................ 53 6.2.1 The Effect of Charging Understood in a System Context ........................................... 55 6.2.2 Influence of Type of Charging System on Waste Prevention Effect ........................... 62 6.2.3 Quantifying Prevention Effects ..................................................................................... 65 6.2.4 The Nature of the Response to Price .......................................................................... 70 6.2.5 Where Does the Prevented Waste Go? ........................................................................ 76 6.3 Environmental Impacts ....................................................................................................... 79 6.3.1 Torrelles de Llobregat ................................................................................................... 83 6.3.2 Schweinfurt .................................................................................................................... 85 6.3.3 Gent and Destlebergen ................................................................................................. 85 6.4 Key Observations Regarding Effectiveness ....................................................................... 87 7.0 Product Taxes / Fees / Charges ...................................................................................... 89 7.1 Case Study: Irish Plastic Bag Levy ...................................................................................... 89 7.1.1 Background .................................................................................................................... 89 7.1.2 Waste Prevention Impacts ............................................................................................ 91 7.1.3 Environmental Impacts ................................................................................................. 92 7.1.4 Litter Impacts ................................................................................................................. 95 7.2 Evidence of Impacts ............................................................................................................ 97 7.3 Key Observations Regarding Effectiveness ....................................................................... 98 8.0 Subsidies for Products ................................................................................................... 101 8.1 Case Study ......................................................................................................................... 101 8.2 Evidence of Impacts .......................................................................................................... 104 8.2.1 Waste Prevention Impacts ........................................................................................
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