An impact analysis of a Deposit-Refund System to mitigate hazardous packaging waste in Thai agricultural sector
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Abstract
Hazardous waste could harm human, animal, and ecology system and it has been a critical issue in Thailand for many years. One of the main sources of hazardous waste would come from the agricultural sector such as herbicide and pesticide chemical. In order to cope with these a Deposit-Refund System (DRS) may be a suitable policy to mitigate the waste especially hazardous packaging waste used in the sector. This theoretical work attempted to investigate impacts of the policy on the market including hazardous chemical and agricultural product prices. The findings showed that whenever DRS is imposed in the agricultural sector, the price of hazardous chemical products would increase by the total of the marginal administrative cost of hazardous packaging waste management and the marginal renting cost of keeping hazardous packaging wastes for return. In addition, the price of agricultural products would also increase by the value of administrative cost and renting area cost per unit of hazardous packaging waste. As a result, the policy maker needs to prepare for the rising prices together with the policy implementation.
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