Where Is the Value in the Chain?
TABLE 4.3 List of Policy Instruments from Which Plastics Policy Simulator Users
Can Select
Category
Taxes and fees
Public financing
Bans and standards
Behavioral change Governance
Policy instruments for system reform Mandatory modulated extended producer responsibility fees Virgin plastic excise tax on all packaging Plastic excise tax on all packaging Plastic excise tax on individual products Carbon tax Deposit return schemes Landfill tax Household fees Alternative materials Reuse systems Formal collection Informal collection Sorting facilities and operations Mechanical recycling Chemical recycling Landfill facilities and operations Incinerators Refuse-derived fuel Plastic labeling Product restrictions / bans Mandatory product design requirements Target reduction in plastic waste imports Consumer education campaigns Improvements in governance system
Source: Adapted from World Bank 2022a. Note: The plastics policy simulator model was designed to offer a wide range of options available to p olicy makers and does not reflect the World Bank Group’s support of one option versus another.
in the technical core of the model. Application of policy instruments is not costless. For governments, the model incorporates administrative costs of implementing and enforcing policy instruments. The PPS also includes transaction costs of compliance with some policy instruments by economic agents represented in the system. For example, in Indonesia, stakeholders indicated that about 4 percent of the total value of subsidies that formal waste collectors receive from the government is spent on application for funds and reporting how they were spent. Policy instruments can be applied individually or combined in many configurations, or packages. Combining policy interventions is a common practice in many countries and is a good practice, because—as discussed earlier—multiple market and policy failures throughout the plastic life cycle compound plastic pollution. Many perverse incentives overlap, requiring multiple policy instruments to correct them.
76
