Assessment of Japanese recycling policies for home electric appliance: Cost-effectiveness analysis and socioeconomic and technological implications

Under Japan’s home electric appliances (HEA) recycling policy, consumers pay a recycling fee when discarding of four types of HEA waste: televisions, refrigerators, washing machines, and air conditioners. However, other systems have also been favored as policy instruments in terms of cost and recycling rate. We assess the recycling policies by addressing their cost effectiveness and socioeconomic and technological implications using Japanese market and recycling data to examine any potentially substantial differences. We develop an economic model of mass balance of disposed HEAs and then calculate reduction costs under three recycling policies. Overall, to achieve a certain level of waste reduction, a deferred disposal fee system always requires the most expensive fees. Whether a deposit-refund system incurs lower fees than an advanced disposal fee system depends on demand elasticity and consumers’ response to recycling fees. We also describe impacts and implications of these policies on recycling behavior, technological development and environmental issues.

► We model mass-balance structure of home electric appliances in Japan.
► We evaluate waste reduction costs for three different recycling policies.
► A deferred disposal fee system always requires the most expensive fees.
► Demand elasticity and consumers’ response to recycling fees is important.
► We address the effects of environmental and technological for policy design.