Waste recovery using packing waste recovery notes: a cost-effective way of meeting targets?

To comply with EU recycling targets for packaging waste, the UK relies on an industry run and market based eco-tax levied by reprocessors on obligated businesses. After examining the details of this approach, the use of Packaging Waste Recovery Notes is assessed in terms of its allocative impact and the contribution made to eco-efficiency. The evidence indicates the UK system has minimized the cost of delivering current EU targets, but has not been able to deliver allocative efficiency or to demonstrate dynamic improvements in resource use. Its effectiveness in meeting impending higher targets remains open to question.