An optimal deposit-refund system for mitigating hazardous packaging waste in Thailand's agricultural sector
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Abstract
This study utilized a Deposit-Refund System (DRS) with an optimal rate of deposit in order to increase the return rate of hazardous chemical packaging waste back into the system. Both survey and time series data were used to examine the willingness to pay (WTP) of Thai farmers and the marginal social cost of waste disposal (MSC) so that they would be used as an appropriate deposit rate. The findings indicate that using MSC at 0.30 USD/bottle as deposit rate would induce a higher return rate than using WTP at 0.15 USD/bottle. The distance between farmers’ homes and hazardous chemical shops can also negatively affect the return rate. Thus, to reduce hazardous packaging waste in Thai agriculture, the government needs to impose a deposit rate at 0.30 USD/bottle (MSC) and strategically increase the number of returning points in order to boost the return rate for hazardous packaging waste.
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