Source: ESABC, 2012 The example begins with a firm (I use Sony here as an example) that wishes to sell TVs in BC. TVs fall under the Recycling Regulation’s electronics program managed by the Electronics Stewardship Association of BC. First, Sony must verify that there is an accepted steward capable of recycling the TV, which in this case, is the private firm Encorp Pacific. The steward, Encorp, then informs Sony of the ADF (EHF), $31.75 as shown in Figure 6, which Sony adds to the suggested retail price. A Sony retailer then sells the TV to a consumer and remits the ADF amount to Sony, who in turn pays the fee to Encorp. When the TV reaches the end of its usefulness to the consumer, he/she returns it to an Encorp affiliated facility free of charge (minus the transaction cost of physically transporting the TV). Encorp then pays a primary recycler” to recycle the TV (ESABC, 2012). “qualified Both Encorp and the BC Ministry of Environment ensure that the primary recycler is in fact recycling the TV in an environmentally sustainable fashion, and even monitor the secondary uses of the recycled material (ESABC, 2012). Encorp and all stewards are required to publish yearly accounting statements which are audited by the province and available for public viewing. Stewards are committed under the regulation to use 100% of the profits in the managing of regulated wastes, thus ensuring not-for profit- status. A key aspect of this auditing, and the entire program in general, is that if the costs of recycling a product are reduced, perhaps by a tech shift or an increase in demand for the recycled material and thus its resale price, the ADF (EHF) must be correspondingly reduced. If a product can be recycled at net-zero cost, or even turns a profit, the ADF becomes zero.
Source: ESABC, 2012 The example begins with a firm (I use Sony here as an example) that wishes to sell TVs in BC. TVs fall under the Recycling Regulation’s electronics program managed by the Electronics Stewardship Association of BC. First, Sony must verify that there is an accepted steward capable of recycling the TV, which in this case, is the private firm Encorp Pacific. The steward, Encorp, then informs Sony of the ADF (EHF), $31.75 as shown in Figure 6, which Sony adds to the suggested retail price. A Sony retailer then sells the TV to a consumer and remits the ADF amount to Sony, who in turn pays the fee to Encorp. When the TV reaches the end of its usefulness to the consumer, he/she returns it to an Encorp affiliated facility free of charge (minus the transaction cost of physically transporting the TV). Encorp then pays a “qualified primary recycler” to recycle the TV (ESABC, 2012). Both Encorp and the BC Ministry of Environment ensure that the primary recycler is in fact recycling the TV in an environmentally sustainable fashion, and even monitor the secondary uses of the recycled material (ESABC, 2012). Encorp and all stewards are required to publish yearly accounting statements which are audited by the province and available for public viewing. Stewards are committed under the regulation to use 100% of the profits in the managing of regulated wastes, thus ensuring not-for profit- status. A key aspect of this auditing, and the entire program in general, is that if the costs of recycling a product are reduced, perhaps by a tech shift or an increase in demand for the recycled material and thus its resale price, the ADF (EHF) must be correspondingly reduced. If a product can be recycled at net-zero cost, or even turns a profit, the ADF becomes zero.
Munro.docx