Policy Tools for Electronics Recycling Characteristics of a specific certificate market design

Several countries across the globe have implemented or are about to implement specific electronics recycling regulations based on the principle of extended producer responsibility (EPR). Both existing and proposed solutions are implemented with various degrees of centralization; one solution involves a steering regulatory authority, another connects the EPR with strong competitive market structures. As different WEEE recycling approaches evolve, the best way to achieve a cost- and eco-efficient system organization is still contentious. Theoretical system characteristics intended by policy-makers and their realization in practice often don't coincide. Practical implementations can give rise to absurd organizational outcomes. Some incentive structures are counterproductive, and actual environmental purposes of recycling legislation are often poorly reflected. This paper presents a specific certificate market tool that potentially has intriguing properties in terms of system performance, control, organization and cost. The approach introduces competition on several levels in the value chain and sets incentives for the eco-efficient treatment of WEEE. In addition, it enables decentralized decision-making which is one of the key levers for a cost-efficient system organization in a competitive market setting