| | IMPROVING RECYCLING MARKETS |
| | 1,06 | | MB |
| | 172 | | stron |
| | 4996 | | ID | Organisation for Economic Co-operation and Development |
| | 2005 | | rok |
| | TABLE OF CONTENTS |
| | CHAPTER 1: INTRODUCTION AND OVERVIEW OF MARKET FAILURES AND BARRIERS 9 |
| | 1. Introduction 9 |
| | 2. The Economic Importance and Structure of the Recycling Sector in OECD Countries. 9 |
| | 3. The Nature of Potential Market Imperfections in Secondary Material Markets 13 |
| | 3.1. Transaction Costs and Search Costs in Secondary Material Markets. 14 |
| | 3.2. Information Failure and Uncertainty Related to Waste Quality . 17 |
| | 3.3. Consumption Externalities Related to Products Derived from Secondary Materials. 20 |
| | 3.4. Technological Externalities Related to Recovery and Reuse of Secondary Materials . 23 |
| | 3.5. Market Power and Vertical Integration in Waste Recovery . 25 |
| | 4. Testing for Market Efficiency . 27 |
| | 5. Conclusions 29 |
| | ANNEX 1: LOSS AVERSION – AN EXAMPLE. 31 |
| | ANNEX 2: THE DETERMINANTS OF GLASS RECYCLING RATES IN THE OECD. 32 |
| | ANNEX 3: PRICE VOLATILITY FOR SELECTED PRIMARY & SECONDARY MATERIALS. 34 |
| | REFERENCES 38 |
| | CHAPTER 2: IMPROVING MARKETS FOR WASTE OILS 44 |
| | 1. Introduction 44 |
| | 2. The Market for Lubricants 45 |
| | 2.1. Characteristics of Lubricant Oils 46 |
| | 2.2. Base Oil and Lubricant Product Trends 46 |
| | 2.3. Waste Oil and Used Oil 48 |
| | 3. Environmental Impacts from Waste Oil Management 49 |
| | 3.1. Post-collection environmental impacts. 49 |
| | 3.2. Illegal Disposal 52 |
| | 3.3. Conclusion. 54 |
| | 4. Market Failures and Barriers. 54 |
| | 4.1. Information failures relating to recovered oil quality. 54 |
| | 4.2. Risk aversion to using re-refined base oils . 55 |
| | 4.3. Switching costs and barriers to entry 56 |
| | 4.4. Technological externalities. 57 |
| | 5. Policy Responses 58 |
| | 5.1. United Kingdom 58 |
| | 5.2. Italy 59 |
| | 5.3. Australia. 62 |
| | 5.4. Alberta, Canada . 63 |
| | 5.5. European Union. 64 |
| | 5.6. Comparative Assessment 65 |
| | 6. Conclusions 66 |
| | 6.1. Targeting environmental policy objectives. 67 |
| | 6.2. Providing information to market participants. 67 |
| | 6.3. Discouraging illegal dumping and burning 67 |
| | 6.4. Maximising and optimising collection without restricting re-refining . 68 |
| | 6.5. Removing market and policy distortions 68 |
| | 6.6. Ensuring policy consistency . 69 |
| | REFERENCES 70 |
| | CHAPTER 3: IMPROVING MARKETS FOR WASTE PLASTICS. 72 |
| | 1. Introduction 72 |
| | 2. The Importance of Plastics in OECD Economies . 72 |
| | 2.1. The Process of Making Plastics 73 |
| | 2.2. Uses of Major Plastics 74 |
| | 2.2. Uses of Major Plastics 75 |
| | 2.3. The Environmental Impacts of Plastics and Plastics Recycling . 76 |
| | 3. The Recycling Process 78 |
| | 3.1. Source of Waste: Post-Industrial vs. Post-Consumer Recycling 78 |
| | 3.2. Nature of Recovery: Closed Loop, Open Loop, and Energy Recovery 79 |
| | 3.3. Mechanical vs. Feedstock Recycling 80 |
| | 3.4. The Plastics Recycling Industry . 80 |
| | 4. Barriers to Recycled Material Use 81 |
| | 4.1. Technological Externalities 81 |
| | 4.2. Collection, Transaction and Search Costs 82 |
| | 4.3. Waste Quality and Demand-Side Information 'Failures' 84 |
| | 4.4. Market Power and Price Discrimination. 85 |
| | 4.5. Signalling and Market Segmentation 87 |
| | 5. Market Conditions and Price Volatility. 87 |
| | 5.1. Evidence of Price Volatility 88 |
| | 5.2. The Reasons for Price Volatility. 88 |
| | 5.3. The Consequences of Price Volatility 90 |
| | 6. Policy Case Studies 92 |
| | 6.1. United States 92 |
| | 6.2. Germany 100 |
| | 6.3. Sweden. 106 |
| | 7. Conclusions and Policy Recommendations 113 |
| | REFERENCES 117 |
| | CHAPTER 4: IMPROVING MARKETS FOR USED RUBBER TYRES 121 |
| | 1. Introduction 121 |
| | 2. The lifecycle of tyres 122 |
| | 2.1. Production 122 |
| | 2.2. Consumption 123 |
| | 2.3. Collection and Waste Management 124 |
| | 2.4. International trade 127 |
| | 3. The market for secondary rubber 129 |
| | 3.1. Current configuration of the used tyre market 130 |
| | 3.2. Optimal configuration of the used tyre market. 131 |
| | 4. Market failures and barriers 133 |
| | 4.1. Retreading 133 |
| | 4.2. Rubber recycling 137 |
| | 4.3. Energy recovery. 140 |
| | 4.4. Incineration and landfilling. 141 |
| | 4.5. Illegal dumping 143 |
| | 5. Policy influences in the market for secondary rubber . 143 |
| | 5.1. Existing tyre-related policies 144 |
| | 5.2. Comparative assessment of instruments . 147 |
| | 6. Policy recommendations . 148 |
| | 6.1. Set clear targets while maintaining flexibility 148 |
| | 6.2. Well-targeted support for research and development . 148 |
| | 6.3. Actively fight illegal dumping 149 |
| | 6.4. Promote retreads to the public 149 |
| | 6.5. Encourage extended producer responsibility 150 |
| | 6.6. Implement harmonised standards for retreads, crumb rubber and TDF . 150 |
| | REFERENCES 152 |
| | CHAPTER 5: PUBLIC POLICY AND RECYCLING MARKETS. 156 |
| | 1. Introduction 156 |
| | 2. Policies Targeted Directly at Recycling 158 |
| | 3. Environmental Policies Designed to Reduce Waste-Related Environmental Damages . 160 |
| | 4. Removing Policy Failures Which Discourage Recycling . 162 |
| | 5. Addressing Market Inefficiencies in Recyclable Material Markets 163 |
| | 5.1. Market Power 165 |
| | 5.2. Information Failures . 166 |
| | 5.3. Consumption Externalities 166 |
| | 5.4. Technological Externalities 167 |
| | 5.5. Search and Transaction Costs. 168 |
| | 5.6. Summary 169 |
| | 6. Conclusions 170 |
| | REFERENCES 171 |