A deposit-refund system (DRS), also known as deposit-return system, advance deposit fee or deposit-return scheme, is a surcharge on a product when purchased and a rebate when it is returned. A well-known example is when container deposit legislation mandates that a refund is given when reusable packaging is returned. A DRS is a market-based instrument to address externalities, similar to a pigovian tax, with the key difference that a DRS refunds the fee after the product is returned. [1] This provides an incentive to consumers to properly dispose of a product.
While most commonly used with beverage containers, DRS can be used on other materials including liquid and gaseous wastes. [2] A DRS is used on products such as batteries, tyres, automotive oil, consumer electronics and shipping pallets.
There are three potential advantages of a DRS: it reduces illegal dumping by giving a financial incentive, it makes monitoring and enforcement easier, and evading the costs is difficult. [1]
DRS is said to be based on the principles of Extended Producer Responsibility. [3]
DRS can be either voluntary or mandated by legislation.
Recycling is the process of converting waste materials into new materials and objects. This concept often includes the recovery of energy from waste materials. The recyclability of a material depends on its ability to reacquire the properties it had in its original state. It is an alternative to "conventional" waste disposal that can save material and help lower greenhouse gas emissions. It can also prevent the waste of potentially useful materials and reduce the consumption of fresh raw materials, reducing energy use, air pollution and water pollution.
Product stewardship is an approach to managing the environmental impacts of different products and materials and at different stages in their production, use and disposal. It acknowledges that those involved in producing, selling, using and disposing of products have a shared responsibility to ensure that those products or materials are managed in a way that reduces their impact, throughout their lifecycle, on the environment and on human health and safety. This approach focusses on the product itself, and everyone involved in the lifespan of the product is called upon to take up responsibility to reduce its environmental, health, and safety impacts.
A reusable bottle is a bottle that can be reused, as in the case as by the original bottler or by end-use consumers. Reusable bottles have grown in popularity by consumers for both environmental and health safety reasons. Reusable bottles are one example of reusable packaging.
The Oregon Bottle Bill is a container-deposit legislation enacted in the U.S. state of Oregon in 1971 that went into effect in October 1972. It was the first such legislation in the United States. It was amended in 2007 and 2011. It requires applicable beverages in applicable sizes in glass, plastic or metal cans or bottles sold in Oregon to be returnable with a minimum refund value. The refund value was initially 5 cents until April 1, 2017, when it increased to 10 cents. The Oregon Legislature has given the Oregon Liquor Control Commission the authority to administer and enforce the Bottle Bill. Oregon Beverage Recycling Cooperative (OBRC), a private cooperative owned by retailers and beverage distributors, administers the collection and transportation of returned containers and keeps all the unclaimed deposits. Materials from returned containers are sold by the OBRC and proceeds are handed out to beverage distributors. In 2022, the bottle bill was expanded to include canned wine, which will become eligible for redemption on July 1, 2025.
Litter consists of waste products that have been discarded incorrectly, without consent, at an unsuitable location. The word litter can also be used as a verb: to litter means to drop and leave objects, often man-made, such as aluminum cans, paper cups, food wrappers, cardboard boxes or plastic bottles on the ground, and leave them there indefinitely or for other people to dispose of as opposed to disposing of them correctly.
Extended producer responsibility (EPR) is a strategy to add all of the estimated environmental costs associated with a product throughout the product life cycle to the market price of that product, contemporarily mainly applied in the field of waste management. Such societal costs are typically externalities to market mechanisms, with a common example being the impact of cars.
Container-deposit legislation is any law that requires the collection of a monetary deposit on beverage containers at the point of sale and/or the payment of refund value to the consumers. When the container is returned to an authorized redemption center, or retailer in some jurisdictions, the deposit is partly or fully refunded to the redeemer. It is a deposit-refund system.
A reverse vending machine (RVM) is a machine that allows a person to insert a used or empty glass bottle, plastic bottle, or aluminum can in exchange for a reward. After inserting the recyclable item, it is then compacted, sorted, and analyzed according to the number of ounces, materials, and brand using the universal product code on the bottle or can. Once the item has been scanned and approved, it is then crushed and sorted into the proper storage space for the classified material. Upon processing the item, the machine rewards people with incentives, such as cash or coupons.
Glass recycling is the processing of waste glass into usable products. Glass that is crushed or imploded and ready to be remelted is called cullet. There are two types of cullet: internal and external. Internal cullet is composed of defective products detected and rejected by a quality control process during the industrial process of glass manufacturing, transition phases of product changes and production offcuts. External cullet is waste glass that has been collected or reprocessed with the purpose of recycling. External cullet is classified as waste. The word "cullet", when used in the context of end-of-waste, will always refer to external cullet.
Reuse is the action or practice of using an item, whether for its original purpose or to fulfill a different function. It should be distinguished from recycling, which is the breaking down of used items to make raw materials for the manufacture of new products. Reuse – by taking, but not reprocessing, previously used items – helps save time, money, energy and resources. In broader economic terms, it can make quality products available to people and organizations with limited means, while generating jobs and business activity that contribute to the economy.
California Redemption Value (CRV), also known as California Refund Value, is a regulatory fee paid on recyclable beverage containers in the U.S. state of California. The fee was established by the California Beverage Container Recycling and Litter Reduction Act of 1986 and further extended to additional beverage types in California State Senate Bill No. 1013, signed into law on September 28, 2022 and taking effect on January 1, 2024; since 2010 the program has been administered by the Cal/EPA California Department of Resources Recycling and Recovery (CalRecycle).
There is no national law in the United States that mandates recycling. State and local governments often introduce their own recycling requirements. In 2014, the recycling/composting rate for municipal solid waste in the U.S. was 34.6%. A number of U.S. states, including California, Connecticut, Delaware, Hawaii, Iowa, Maine, Massachusetts, Michigan, New York, Oregon, and Vermont have passed laws that establish deposits or refund values on beverage containers while other jurisdictions rely on recycling goals or landfill bans of recyclable materials.
Recycling in the Netherlands is under the responsibility of local authorities. Different localities implement different systems, and also within a municipality there can be multiple regimes. Municipalities publish a yearly calendar of the pickup dates and the addresses of the waste separation and recycling stations.
Electronic waste is a significant part of today's global, post-consumer waste stream. Efforts are being made to recycle and reduce this waste.
There are ten states in the United States with container deposit legislation, popularly called "bottle bills" after the Oregon Bottle Bill, the first such legislation that was passed.
The Ontario Deposit Return Program (ODRP), also simply known as Bag it Back, is a regulation of the province of Ontario, Canada. Its purpose is to divert recyclable materials from landfill or low-quality recycling uses by charging a fee for each alcoholic beverage container sold in the province, and processing the material for re-use or other recycling activities once the containers are returned for a refund of the deposit fee. Customers forfeit the deposit fee if the container is not returned.
Container deposit legislation (CDL), also known as a container deposit scheme (CDS), is a scheme that was first implemented in South Australia in 1977 and over the decades has spread to the Northern Territory in 2012, New South Wales in 2017, the Australian Capital Territory in June 2018, Queensland in November 2018, Western Australia in October 2020 and Victoria in November 2023. The scheme is due to commence in the last remaining state of Tasmania in early 2024.
Recycling in Australia is a widespread, and comprehensive part of waste management in Australia, with 60% of all waste collected being recycled. Recycling is collected from households, commercial businesses, industries and construction. Despite its prominence, household recycling makes up only a small part (13%) of Australia's total recycling. It generally occurs through kerbside recycling collections such as the commingled recycling bin and food/garden organics recycling bin, drop-off and take-back programs, and various other schemes. Collection and management of household recycling typically falls to local councils, with private contractors collecting commercial, industrial and construction recycling. In addition to local council regulations, legislation and overarching policies are implemented and managed by the state and federal governments.
Encorp Pacific (Canada) is a federally incorporated, not-for-profit, product stewardship corporation with beverage container management as its core business. Their mandate is to develop, manage and improve systems to recover used packaging and end-of-life products from consumers and ensure that they are properly recycled and not land-filled or incinerated. This model is commonly referred to as Extended Producer Responsibility (EPR) or Industry Product Stewardship (IPS).
The history of bottle recycling in the United States has been characterized by four distinct stages. In the first stage, during the late 18th century and early 19th century, most bottles were reused or returned. When bottles were mass-produced, people started throwing them out, which led to the introduction of bottle deposits. However, during the second stage, after World War II, consumption patterns changed and nonreturnable containers became popular, which littered the environment. Some states implemented "bottle bills" that instituted deposits. The beverage-container industry first implemented private recycling programs and then pushed for municipal curbside recycling as an alternative to "bottle bills". More recently, PET bottles have largely replaced other materials. The United States used to be the front-runner when it came to recycling PET, but European countries have since outpaced the US.