2008 Volume 19 Issue 6 Pages 353-363
There are a number of studies that state the advantages of incorporating a deposit-refund system, which is one of the economic instruments sometimes used in waste management structures. According to previous studies, however, there have also been negative effects seen in the deposit-refund system, which is why these systems have rarely been successfully put into practice. This paper attempts to clarify the origin of the gap between recommendations made by previous studies and the difficulties found in applying the system for real-life applications. The paper organizes the advantages and disadvantages found in previous economic studies on deposit-refund systems. In conclusion, it suggests that further studies are necessary for fully understanding cost-benefit analysis of the deposit-refund system, taking into consideration both the advantages and disadvantages. It also suggests the need for finding solutions regarding the elimination of these disadvantages in the deposit-refund system so that the advantages can be better utilized.
