An application of statistical methods on sustainable pricing mechanism for waste container recycling in Taiwan

Abstract

Waste containers generated by households are recycled under 4-in-1 recycling program in Taiwan for more than 20 years. Along with the development of circular economy, waste recycling has become increasingly important. Recycling fund plays an important role in keeping the recycling system running. Developing a sustainable pricing mechanism for the recycling system is an important but sophisticate issue. This study aims to use statistical methods including sampling design, regression model, ratio estimation, and cost estimation model to carry out a sustainable pricing mechanism, which can not only reflect the reality of recycling market but also comply with circular economy. The sustainable pricing mechanism proposed by this study first considers recycling cost, recycling revenue, recycling performance, as well as balance of recycling fund, and then sets differential pricing mechanism based on the product designs and recycling technologies. It is also a floating pricing mechanism that responds to monthly economic changes. This study takes waste container recycling as an example for statistical modelling. The statistical methods used in this study can also be applied for other solid waste recycling items.