Revisiting the extended producer responsibility program for metal packaging in South Korea

Recently, developed and emerging countries have increasingly adopted the principle of extended producer responsibility (EPR) to reduce waste. In 2003, South Korea replaced the waste deposit recycling (WDR) program with the EPR program. Previous comparative analyses between the WDR and EPR programs have been qualitative evaluations and have not yet quantitatively shown whether the change has increased benefits. The aim of this paper is to explore which program brings larger net benefits. Because of limited data availability, here we focus on metal packaging exclusively. We find that the recycling rate dropped from 59% in 2000 to 40% in 2011 and recycling volume dropped accordingly. Cost-benefit incidence analysis shows that net social benefits decreased by 2.8 billion won (2.5 million US dollars), while the net benefits to producers increased by 1.9 billion won (1.7 million US dollars) under the EPR program compared with the WDR program. The government of South Korea should set an ambitious recycling target and narrow the scope of the exemption from the mandatory recycling requirement.