(BMO7006) APPLIED BUSINESS PROJECT

GROUP ASSESSMENT 1

IMPACT AND EFFECTIVENESS OF DEPOSIT RETURN SYSTEMS AND COMBINED

ENVIRONMENTAL MEASURES IN THE NETHERLANDS

SUBMITTED TO: EVI LANASIER

Submitted by:

Pramod KC (s4665646)

Sukhmani kaur (s8094534)

Sailesh Pathak (s4676430)

Tommoy Mahmud (s8093628)

Due date: 3 March 2024

Submitted date: 3 March 2024

Executive Summary:
Undertaking environmental assessments of various territorial areas has been an important project
as a way to ensure that the environment is sustainable and also that reduces the ecological
footprint. This is because ecological sustainability has been a pre-issue that has been talked about
and debated for a very long time. The main issue associated with ecological sustainability is how
one can make use of the same resources for a long amount of time, and preserve what is
available. One such initiative is regarded as DRS or a deposit refund system which incorporates
an additional charge on commodity consumption and a reimbursement whenever the goods or
their container are sent back for reclamation. Although there have been studies associated with
the DRS or deposit refund system that has been active in many nations worldwide, it lacks
substantial backing regarding the studies that compare the effects it has on consumer habits,
especially when coupled with other alternatives.

This paper will investigate ecological sustainability initiatives that the Netherlands has
implemented as part of the circular economy and how effective they have been. The most recent
expansion of its DRS system now encompasses the metallic cans and the tax that clients shall
have to pay on single-use containers is sure to have a profound effect on the ecological practices,
rates of recycling, and consumer behavior towards sustainability. With research objectives that
will be made, the paper will provide a brief overview of what is to come.

The main research question for this research primarily consists of how the inclusion of more
container varieties in the Dutch Deposit Return System has impacted the utilization of reusable
beverage containers in comparison to before the expansion. This is going to help in identifying
the overall effectiveness of the ecological sustainability of the Netherlands and how it has helped
them reduce their ecological footprint. In addition to this, the main theories that it discusses
consist of the effectiveness of the expansion of suitable containers for deposit returns, the impact
that the Netherlands’ comprehensive strategies have brought upon, and also the specific
components of the Netherlands’ environmental policy measures that are notably successful or
need more improvement to promote sustainable consumption.

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 Table of Contents
Executive Summary:...................................................................................................................................................
1. Background:............................................................................................................................................................
2. Research Questions/Objectives:.............................................................................................................................
3. Literature review:...................................................................................................................................................
3.1 Inclusion of Container variety in the Dutch DRS (Deposit Return System)..................................................
3.2. Expansion of Suitable Containers for Deposit Returns Systems...................................................................
3.3. Impact of Netherlands’ Comprehensive Strategy of Integrating DRS..........................................................
3.4. Effectiveness of Netherlands’ environmental policies...................................................................................
4. References..............................................................................................................................................................

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 1. Background:
Ecological sustainability has been an issue that has been talked about and debated for a very long
time. The main issue associated with ecological sustainability is how one can make use of the
same resources for a long amount of time, and preserve what is available. Recycling comprises
various initiatives following which one can reuse the garbage being disposed of to create new
materials and products effectively promoting ecological sustainability(Romero-Hernández and
Romero, 2018). A government might try a whole set of initiatives to get its people to recycle
effectively and help towards ecological sustainability for the future. One such initiative is
regarded as DRS or a deposit refund system. It consists of a method that incorporates an
additional charge on commodity consumption and a reimbursement whenever the goods or their
container are sent back for reclamation(Walls, 2012). The system has been shown to get the
desired results of ecological sustainability in regions where it has been implemented(Dace,
Pakere, and Blumberga, 2013). Some have viewed the system to be unnecessary due to the high
cost associated with the implementation and sustainability of the system nationwide, while others
believe that it is the right step moving forward.

Although there have been studies associated with the DRS or deposit refund system that have
been active in many nations worldwide, it lacks substantial backing regarding the studies that
compare the effects it has on consumer habits, especially when coupled with other alternatives.
With the Dutch government deciding to include metallic containers as well in the system and a
new tax on disposable cups, along with the other initiatives being promoted in the nation, there
needs to be a proper study to understand its influence on consumer habits. This research will aim
to tackle the question associated with the viability of these initiatives and their impact on
consumer habits, along with quantitative information regarding the impact it has had. We have
seen the initial study suggesting a boost in recycling numbers and a move regarding the handling
of reusable commodities, but there still needs to be a deep understanding of what effects it has
and how it can be quantified. Another substantial reason behind the research is to understand the
effect that DRS and other initiatives have in fostering a long-lasting habitual change. By
narrowing the research area to just the Netherlands, we will be analyzing the effects that a single
plan has against the impact of combined plans and understand how it shall help consumers move

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towards sustainability, effectively choosing the best out of those, which might prove helpful to
policymakers as well.

2. Research Questions/Objectives:
The research will look to answer some questions to bolster further the relevancy and structure of
the research being conducted. The following are the main research questions that shall be
answered during this research.

1. How has the inclusion of more container varieties in the Dutch Deposit Return System
impacted the utilization of reusable beverage containers in comparison to before the
expansion?
2. Has the expansion of suitable containers for deposit returns encouraged consumers to
choose reusable containers over those requiring deposits, or has it mainly improved
recycling rates?
3. How impactful is the Netherlands' comprehensive strategy, which integrates the DRS,
throwaway cup tax, and promotion of reusables, in promoting the shift towards reusable
drinking containers when compared to using single measures?
4. Are there specific components of the Netherlands' environmental policy measures that are
notably successful or need additional enhancement to promote sustainable consumption
practices?

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 3. Literature review:

3.1 Inclusion of Container variety in the Dutch DRS (Deposit Return System)

The government of the Netherlands decided to make reforms to their DRS or deposit refund
system, from only being inclusive to plastic bottles to now encompassing the various metallic
containers that are thrown out once consumed. This came into effect after the Dutch government
found that the metal cans being disposed of in the open went up by 27% leading to a need for
new initiatives which would help battle it (Konstantoglou et al., 2023). The system has been in
place since 2006 when it was only viable for large plastic bottles, but following the massive
influx of small plastic bottles, it was then modified to include small bottles in 2021 and now
metal cans will also be eligible starting from 2023 to help curb the effects of waste disposal on
the environment (Šmaguc et al., 2023). Another crucial legislation is no free single-use plastics
for delivery and other purposes, the manufacturers will have to charge a certain amount to those
individuals, which is planned so that they can remove the whole single-use plastic from the
market altogether (Gelderblon et al., 2023).

3.2. Expansion of Suitable Containers for Deposit Returns Systems

Preliminary data suggests an increase in recycling rates and a shift towards reusable containers
since the expansion of the Deposit Return System (DRS) and the introduction of the disposable
cup tax (Van der Meer & Jansen, 2023). The results have clearly shown that the new system has
been effective in boosting the recycling rates of wastes which had low recycling rates when the
project first began (Linderhof et al., 2019). Garbage such as metallic cans have seen a boost in
recycling rates owing to the new DRS system that has recently been implemented. The sole use
of the new system will not be able to provide the desired results, according to the notion
presented by Calabrese et al. (2021), marketing is also crucial should the government want to
reap the best benefits from the new initiative aimed at boosting the use of reusable alternatives to
single-use commodities and containers.

3.3. Impact of Netherlands’ Comprehensive Strategy of Integrating DRS

According to Smith et al. (2023), while the DRSs have shown promise in incentivizing
reusable container use, there is still a need for relevant information to understand how it has

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affected or molded the consumer's habits, particularly when coupled with other sustainability
initiatives within the nation. The research conducted by Linderhof et al. (2019) showed the
effectiveness of the DRS for household waste in the Netherlands and found that countries such as
Israel have proven to be highly efficient and have led to a reduction in the waste being produced
by the country. Similar findings were also shown by Lavee (2010) that showed Netherlands’s
DRS has not been effective for quite some time, indicating that there needs to be a significant
change that needs to happen that can ensure that the existing strategies are effective when it
comes to recycling and reusing containers along with the type of impact it can have as well.

3.4. Effectiveness of Netherlands’ environmental policies.

All the research that has been conducted on the topic of the deposit refund system and its
effectiveness has been focused on a singular initiative that being the deposit refund system itself,
there needs to be more information on the effects of the new taxation that has been implemented.
Some research conducted, such as the ones done by Wolde-Rufael & Mulat-Weldemeskel (2023)
on a similar topic around Europe was able to show that the consumer base within the nation has
always taken to the system positively and has massively influenced the recycling initiatives that
the country has undertaken (Konstantoglou et al., 2023). However, the research done by the likes
of Akerboom et al. (2020) highlighted that the EU legal framework can limit the effectiveness of
the closure of ecological policies and whether approaches such as phasing out coals or using
DRS are going to be effective at reducing the ecological footprint. Such a positive viewpoint is
also expected from the consumers in the Netherlands and the research will look to build on it to
understand how the consumers in the nation behaved when the new initiative was announced as
well as the current standing. It, therefore, becomes a major priority for the Dutch government to
decide how they should balance out the CO 2 emissions and also ensure that the ecological
footprint is being reduced.

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 4. References
Calabrese, A. et al. (2021) ‘Operating modes and cost burdens for the European deposit-refund
systems: A systematic approach for their analysis and design’, Journal of Cleaner Production,
288. Available at: https://doi.org/10.1016/j.jclepro.2020.125600.

Dace, E., Pakere, I. and Blumberga, D. (2013) ‘Analysis of sustainability aspects of the
packaging deposit-refund system in Latvia’, WIT Transactions on Ecology and the Environment,
173, pp. 729–740. Available at: https://doi.org/10.2495/SDP130611.

Gelderblom, O., Jonker, J., Peeters, R., & de Vicq, A. (2023). Exploring modern bank
penetration: Evidence from early twentieth‐century Netherlands. The Economic History Review,
76(3), 892-916.

Konstantoglou, A. et al. (2023) ‘Accessing Consumer Perceptions of the Effectiveness of the

Deposit Refund System’, Sustainability (Switzerland), 15(12). Available at:
https://doi.org/10.3390/su15129429.

Lavee, D. (2010). A cost-benefit analysis of a deposit–refund program for beverage containers in

Israel. Waste management, 30(2), 338-345.

Linderhof, V. et al. (2019) ‘Effectiveness of deposit-refund systems for household waste in the
Netherlands: Applying a partial equilibrium model’, Journal of Environmental Management,
232, pp. 842–850. Available at: https://doi.org/10.1016/j.jenvman.2018.11.102.

Romero-Hernández, O. and Romero, S. (2018) ‘Maximizing the value of waste: From waste
management to the circular economy’, Thunderbird International Business Review, 60(5), pp.
757–764. Available at: https://doi.org/10.1002/tie.21968.

Šmaguc, T., Kuštelega, M., & Kuštelega, M. (2023). THE DETERMINANTS OF

INDIVIDUAL’S RECYCLING BEHAVIOR WITH AN INVESTIGATION INTO THE
POSSIBILITY OF EXPANDING THE DEPOSIT REFUND SYSTEM IN GLASS WASTE
MANAGEMENT IN CROATIA. Management: Journal of Contemporary Management Issues,
28(1), 81-103.

Walls, M. (2012) ‘Deposit-Refund Systems in Practice and Theory’, SSRN Electronic Journal
[Preprint]. Available at: https://doi.org/10.2139/ssrn.1980142.

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Wolde-Rufael, Y., & Mulat-Weldemeskel, E. (2023). Effectiveness of environmental taxes and
environmental stringent policies on CO2 emissions: the European experience. Environment,
Development and Sustainability, 25(6), 5211-5239.