The Study Of The Comparison Between Individual Producer Responsibility And Collective Producer Responsibility Model Under EPR

Nowadays, with the development of society, the quantity and variety of consumption product has grown, this brings too much waste. A large amount of waste has a huge pressure on environment, such as, dwindling non-renewable resources, a significant reduction in available land area of residential, leisure and agriculture and the pollution of air, water and land. To solve these problems, the environmental policy should turn to enterprise not only in Macroscopic. So some environmental policies based on extended producer responsibility (EPR) become more and more important.Under EPR-based take-back laws, producers are physically or financially responsible for the collection of end-of-life product in the whole life of product, this can reduce the amount of waste effectively. So, the environmental policy turns to macroscopic from microcosmic of enterprise. However, the principle of environmental policy is not only to reduce the amount of waste, but also to improve the design of environment. This can make products recycle more easily, so it reduces the recovery cost, conserves of resources and reduces environment pollution. However, if we want to know the environmental policy works or not, we should also study its shareholders. So this article has a comparison on producer surplus and consumer surplus under IPR model and CPR model. Through analysis we know that the producer surplus of low quality product under IPR is higher than producer surplus of low quality product under CPR. When the product has an enough quality difference, the consumer surplus of high quality product under CPR is higher than IPR. The conclusion of consumer surplus is the same with producer surplus.The study of our article about comparison between IPR and CPR model is under the competitive situation, after we get the outcome of IPR and CPR model, we have numerical simulation to these outcomes and then analyze these outcomes, this analysis makes our article has a close relationship to reality and makes producer have the correct choice.