An Analysis of the Implementation of the Extender Producer Responsibility Scheme in Achieving Waste Management Objectives in Croatia

Sažetak

This paper analyses the implementation and effectiveness of the Extended Producer Responsibility (EPR) scheme in achieving national waste management objectives in Croatia. EPR is a policy approach that shifts the responsibility for post-consumer waste from municipalities and taxpayers to producers, aligning with the polluter-pays principle and supporting circular economy goals. Croatia has adopted EPR system for six special waste categories: packaging waste, end-of-life vehicles (ELVs), waste electrical and electronic equipment (WEEE), waste batteries, waste oils, and waste tyres. The study employs a mixed-effects panel data model to evaluate the relationship between EPR-related financial mechanisms and waste treatment outcomes across these categories from 2015 to 2024. The dataset includes monthly observations on fees paid by obligated producers, investments made by the Environmental Protection and Energy Efficiency Fund, and household consumption levels, with the quantity of waste treated serving as the dependent variable. The results indicate that both producer fees and fund investments have a statistically positive effect on the amount of waste treated, highlighting the importance of financial incentives in driving waste management performance. Conversely, household consumption is negatively associated with treated waste volumes, suggesting that increased consumption may strain existing waste management infrastructure. The study also contextualizes its findings within broader European research, referencing similar panel data analyses that explore the impact of socioeconomic variables on waste generation and circular material use. Notably, the Croatian EPR system has already met or exceeded several EU-mandated targets for waste collection and recycling, particularly in the areas of packaging, ELVs, and batteries. However, challenges remain in aligning fee structures with actual waste volumes and in addressing the environmental risks posed by complex waste streams such as WEEE and waste oils. Overall, the findings underscore the effectiveness of EPR as a policy  for enhancing circularity and environmental sustainability. This paper concludes bybrecommending further refinement of financial mechanisms and data monitoring systems to improve the responsiveness and efficiency of Croatia's EPR framework.