The Eco-Fee Imbroglio: Lessons from Ontario’s Troubled Experiment in Charging for Waste Management
28 Pages Posted: 22 Jan 2011
Date Written: December 9, 2010
Abstract
Charging for the life cycle cost of waste management is contentious. The recent example of some retailers charging "eco-fees" in Ontario, with respect to sales of household products such as detergent, batteries and fluorescent light bulbs, is a case in point. However, the Ontario program for municipal waste, which the provincial government has partially abandoned, is just one example of the movement known as Extended Producer Responsibility (EPR), which is spreading across the country and to many products. As in numerous other jurisdictions, Canadian provinces have imposed, or are considering, similar EPR programs for products such as tires, electronics and countless other goods. This Commentary uses lessons from Ontario’s waste programs to examine EPR’s potential attractions – when such programs are properly designed.
Keywords: Economic Growth and Innovation, Extended Producer Responsibility (EPR), Ontario, Canada, eco-fees, waste management life cycle cost
JEL Classification: Q53, Q58, H23
Suggested Citation: Suggested Citation