The Benefit & Cost from Electronic Waste Recycling: An Empirical Analysis from the Qingdao Recycling Pilot in China

This paper examines the social and private benefit and cost among consumer, producer and government in the recycling pilot of Qingdao. Results show net social benefit from the recycling pilot as well as net loss to the producer. The improper interest allocation between the main stakeholders explains the failure of the pilot. To keep a balance of incentives to all participants, it is necessary for government to provide compensation to producer in suitable forms. Besides, reasonable design of collective networks will contribute to maximum the net social benefit.