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Cash back for empty bottles: New study shows how Recycling Deposit Schemes can work

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As the UK government plans to implement a Deposit Return Scheme (DRS) — cash back for recycling drinks containers — researchers from Brunel University of London have investigated DRSs around the world to explore how they can be successfully implemented to benefit consumers, the environment and the economy.

Deposit Return Schemes, or Deposit Refund Schemes (DRSs), are used worldwide to incentivise people to recycle drink containers such as single-use plastic bottles to prevent litter, tackle climate change and reduce the amount of material going to landfills. By adding a small additional cost to these products as a deposit fee, consumers are encouraged to return the containers to retailers or collection points to claw back the cash.

As the UK government aims to implement a DRS next year, Dr Eleni Iacovidou, Senior Lecturer in Environmental Management at Brunel University of London, has led research into the impact that DRSs can have on the economy, environment and society by exploring their potential to encourage the recycling of plastic bottles to prevent pollution and improve the plastics recycling chain.

“Governments around the world have recognised the significant increase in plastic waste, and the global urgency for recycling this valuable material to protect our planet and promote sustainability,” explained Dr Iacovidou. “Deposit return schemes provide a monetary incentive for consumers to recycle valuable high-demand materials, such as polyethylene terephthalate, known as PET,” she added.

The study examined the implementation of DRSs across Europe, focusing on the economic, environmental, technical and social aspects, along with regulatory dimensions. “DRSs involve a complex network of stakeholders that interact with one another based on their specific implementation structure and model,” explained Dr Iacovidou. A DRS is led by a DRS operator, which can be a local authority or non-profit organisation established by a local authority. They regulate the system and oversee the logistics, including the collections and re-distribution of deposits.

Dr Iacovidou outlined the other stakeholders involved in a DRS, which include retailers and producers —bottle manufacturers, brand owners or distributors of beverage products in plastic packaging. “The producers are responsible for reporting sales data to the DRS operator, while retailers are responsible for reporting the return data —the number of empty drinks containers returned for refunds,” she explained. “The success of a DRS depends on the role of its stakeholders as well as area-specific characteristics, which in tandem can create a well-coordinated system that closely monitors the flow of plastic beverage bottles, ensuring they are captured and recycled with minimal contamination.”

“Furthermore, DRSs support the implementation of the Extended Producer Responsibility (EPR) principles, helping producers comply with the plastic packaging waste legislation,” she added. “This comprehensive approach maximises value recovery from plastic waste and contributes to pollution reduction."

The Brunel expert stressed the importance of collection point locations as well as the deposit value when implementing a DRS. “A key factor in the success of a DRS is the relationship between the number of return locations or the ratio of return locations to population,” she explained. “The value of the deposit on empty bottles also significantly influences their return rates, with higher deposit values resulting in a greater number of returns.”

Dr Iacovidou highlighted the potential for DRSs to create jobs and expressed the importance of targeted advertising campaigns to raise awareness and galvanise consumer involvement. “Consumers are an integral part of the DRS chain and need to be kept informed to ensure their success,” she said. “Region-specific factors influence the success of DRSs, and the study emphasises that while it is difficult to predict which systems will perform best due to local variations, transparency in their implementation and closer coordination in monitoring and reporting are key factors in enhancing a scheme’s performance and driving improvements.”

The Brunel researcher also emphasised the importance of developing inclusive and effective DRS strategies that consider ethnicity, gender, cultural behaviour and demographics. “Gaining a deeper understanding of these factors will allow DRS initiatives to be tailored to diverse communities, encouraging greater participation in sustainable waste management practices,” she explained.

Dr Iacovidou believes that DRSs can change consumers’ perceptions of plastics by attaching a financial value to them. “By providing a financial incentive, DRSs promote proper disposal and recycling, which significantly reduces plastic pollution and marine litter,” she explained. “Considering that beverage bottles are among the leading contributors to ocean pollution, this measure can play a crucial role in driving behaviour change.”

“My team’s research aims to guide the implementation of effective DRSs and support their integration into a comprehensive waste management strategy. This will help advance sustainability and maximise the recovery of value from waste.”

 

‘The potential of Deposit Refund Systems in closing the plastic beverage bottle loop: A review’, by Caterina Picuno, Spyridoula Gerassimidou, Weimu You, Olwenn Martin and Eleni Iacovidou, is published in Resources, Conservation and Recycling.

Reported by:

Nadine Palmer, Media Relations
+44 (0)1895 267090
nadine.palmer@brunel.ac.uk