Financing Options for EPR Programs
Producers have used the following financial mechanisms to finance mandatory EPR programs and insure consumer participation in the program:
- Invisible Fees are included in the overall price of the product, and the consumer is normally not aware that the fee exists.
- Visible Fees and/or Advanced Disposal Fees are added as a separate line item to the price of the product, so the consumer knows that a designated cost is going toward end-of-life recovery.
- Eco Fees are managed by an industry-funded, third-party nonprofit organization that handles collection and recycling responsibilities for a collective group of brand owners. Manufacturers often pass the eco fee onto the price of the product as an invisible fee to the consumer.
- Deposit/Refund Systems charge a deposit at the time of purchase to encourage the return of the product to the producer (commonly used with beverage containers).
For more information on the financial structures used for the various take back programs through out the world, click here! (pdf)