Economic Analysis of Packaging Waste Recycling Law

Kansai Study Group of J.S.W.M.E.

+ Correspondence should be addressed to Takashi Gunjima:
(Karasuma Imadegawa, Kamigyo-ku, Kyoto, 602 Japan)

Abstract

Japanese Packaging Waste Recycling Law (PWRL) is a kind of waste management policy based on Producer Responsibility which is currently the mainstream in European countries. In this article, the position of PWRL is defined in this context. In view of the economics of recycling and waste disposal, PWRL's most significant point is its superiority in waste management market to material market in the recycling process. PWRL has two systems for coordinating demand and supply of recyclables: Market based system and Non-Market based system. Characteristics of these two systems are analyzed based on a simple economic model. PWRL is basically effective in promoting recycling which has a short-term policy objective, but some of its characteristics promote not only recycling but also consumption, such as "Mass-Production, Mass-Consumption, Mass-Recycling society" , is far from PWRL's long-term policy objective- "Circular Society" .

Key words: packaging waste, producer responsibility, recycling, market coordination, circular society