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“The effect of plastic packaging recycling policy interventions as a complement to extended producer responsibility schemes : a partial equilibrium model”. Larraín M, Billen P, Van Passel S, Waste Management 153, 355 (2022). http://doi.org/10.1016/J.WASMAN.2022.09.012
Abstract: Extended producer responsibility (EPR) schemes have effectively increased the plastic waste that is separately collected. However, due to the structure of the recycling industry, EPR cannot increase recycling rates up to the target levels.Additional policy instruments to increase recycling rates such as recycled content targets, green dot fees bonus for recycled content, recycling targets and taxes on non-recycled plastic packaging have been discussed on a political level in the last years. However, very little research has quantitatively studied the effectiveness of these policy interventions.Using a partial equilibrium model, this paper examines the effectiveness of the implementation of the aforementioned policy instruments to increase recycling rates and the impact on different stakeholders of the value chain: plastic producers, consumers, producer responsibility organization and recyclers.Results show that direct interventions (recycled content standards and recycling targets) have the benefit of decoupling the recycling industry from external markets such as the oil market. They can be a good starting point to increase recycling, but in the long term they may be restricting by not presenting incentives to achieve recycling levels beyond the targeted amounts and by limiting technological innovation. On the contrary, eco-nomic interventions such as a green dot fee bonus or a packaging tax create economic incentives for recycling. However, these incentives are diminished by the lower perceived quality of packaging with higher recycled content levels.
Keywords: A1 Journal article; Engineering Management (ENM); Intelligence in PRocesses, Advanced Catalysts and Solvents (iPRACS)
Impact Factor: 8.1
DOI: 10.1016/J.WASMAN.2022.09.012
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Larraí,n M (2022) Recycling of plastics : linking technical, economic and policy aspects of post-consumer plastic packaging. x, 165 p
Abstract: The rise in plastic packaging production and disposal has encouraged the progress of recycling technologies and aroused policy discussion on how to increase recycling rates. However, the effect that these policy instruments will have on the development of the different recycling technologies has not been studied holistically yet. This dissertation explores how new and existing technologies will behave under the market and policy conditions observed at present and after the implementation of the policy instruments that are under discussion. The technologies that are analyzed in this thesis are mechanical recycling and thermochemical recycling of post-consumer polyolefin waste. Using a techno-economic assessment that takes into account the physical properties of the different plastic fractions and their contamination level, the study shows that both mechanical and thermochemical recycling can be profitable if oil prices remain steady or increase. Specifically, mechanical recycling will show better results than thermochemical recycling for plastic fractions with low contamination levels. On the contrary, thermochemical recycling is more profitable for fractions with a higher contamination level from which high-quality products cannot be obtained with mechanical recycling, such as PE films. Moreover, it demonstrates that besides the oil prices and sorted waste prices, waste purity and the plant capacity are the variables that influence more the net present value of thermochemical recycling and the labor cost and waste purity the ones of mechanical recycling. The thesis explores the dynamics between the stakeholders of the circular value chain and predicts the recycling rates under the implementation of several policy instruments. This is done with a supply chain equilibrium model, based on the extended producer responsibility scheme implemented in Flanders, that uses as an input the cost structures of mechanical and thermochemical recycling obtained from the techno-economic assessments. Direct interventions like recycled content standards, can decouple the recycling industry from the oil market, but in the long term, they may not present incentives to achieve recycling levels beyond the targeted amounts and thus limit technological innovation. On the contrary, economic interventions such as taxes, create economic incentives for recycling and allow fund collection from the government but leave the recycled levels dependent on external markets. Results also show that higher recycling rates does not necessarily mean better environmental performance. Therefore, when designing circular economy policies, policymakers should carefully analyze whether the intention is to increase circularity or improve the sustainability of the value chains.
Keywords: Doctoral thesis; Engineering sciences. Technology; Engineering Management (ENM); Intelligence in PRocesses, Advanced Catalysts and Solvents (iPRACS)
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“Techno-economic assessment of mechanical recycling of challenging post-consumer plastic packaging waste”. Larraín M, Van Passel S, Thomassen G, Van Gorp B, Nhu TT, Huysveld S, Van Geem KM, De Meester S, Billen P, Resources Conservation And Recycling 170, 105607 (2021). http://doi.org/10.1016/J.RESCONREC.2021.105607
Abstract: Increasing plastic recycling rates is crucial to tackle plastic pollution and reduce consumption of fossil resources. Recycling routes for post-consumer plastic fractions that are technologically and economically feasible remain a challenge. Profitable value chains for recycling mixed film and tray-like plastics have hardly been implemented today, in sharp contrast to recycling of relatively pure fractions such as polyethylene terephthalate and high-density polyethylene bottles. This study examines the economic feasibility of implementing mechanical recycling for plastic waste such as polypropylene, polystyrene, polyethylene films and mixed polyolefins. In most European countries these plastic fractions are usually incinerated or landfilled whilst in fact technologies exist to mechanically recycle them into regranulates or regrinds. Results show that the economic incentives for the recycling of plastic packaging depend predominantly on the product price and product yield. At current price levels, the most profitable plastic fraction to be recycled is PS rigids, with an internal rate of return of 14%, whereas the least profitable feed is a mixed polyolefin fraction with a negative internal rate of return in a scenario with steadily rising oil prices. Moreover, these values would be substantially reduced if oil prices, and therefore plastic product prices decrease. Considering a discount rate of 15% for a 15-year period, mechanical recycling is not profitable if no policy changes would be imposed by governments. Clearly low oil prices may jeopardize the mechanical recycling industry, inducing the need for policies that would increase the demand of recycled products such as imposing minimal recycled content targets.
Keywords: A1 Journal article; Economics; Engineering sciences. Technology; Engineering Management (ENM); Intelligence in PRocesses, Advanced Catalysts and Solvents (iPRACS)
Impact Factor: 3.313
DOI: 10.1016/J.RESCONREC.2021.105607
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