Producer responsibility for WEEE as a driver of ecodesign: Case studies of business responses to producer responsibility charges

Due to potential environmental, resource and health problems associated with waste, waste minimisation is a prioritised waste management strategy in many countries. Producer responsibility policies promote waste minimisation by stipulating separate collection and recycling of particular waste streams. In addition, a purpose of the policy is to encourage product development that reduces waste generation and improves recyclability. It is sometimes assumed that the financial responsibility assigned to producers for collection and recycling of their end-of-life products will instigate waste minimising product development in order to reduce costs. However, this view has also been contested. Following the adoption of the WEEE Directive (2002/96/EC) all EU member states have to implement producer responsibility for WEEE. Taking a qualitative multiple case study approach, this study explores company responses to the costs of existing national producer responsibility policies for WEEE in relation product development. The purpose is to inform policy-making on the effectiveness of producer responsibility charges in achieving waste minimising product development. The study comprises both large companies and SMEs in the lighting equipments sector. It also includes companies in EU member states without producer responsibility for WEEE in order to see if there are any differences in waste-minimising product design among countries and if national policies have an impact beyond national borders. Economic principles and previous research findings on ecodesign make up the analytical framework for the study. Quantitative data on cost-benefits of ecodesign and waste minimisation achievements were scarce. However, the company responses show that the costs imposed on the producers by the WEEE policy have had little effect on product development so far. The costs can generally be transferred to customers via product prices. The price increases were generally small and without any negative effects on competitiveness. Other drivers such as bans on certain substances, environmental industry product declarations, commercial advantages including direct customer demands from for instance public procurers, are more effective.