Transition from a fund-based to a lifecycle-oriented EPR system: the evolution of extended producer responsibility for electrical and electronic equipment in China

Abstract

Abstract The Extended Producer Responsibility (EPR) system for electrical and electronic equipment in China has evolved from a “fund-based” to a “special fund” model. To transcend conventional end-of-pipe governance, we propose an “EPR 3.0” framework that extends environmental responsibility to the consumption stage. The model centers on consumer responsibility and is operationalized through an advance disposal fee (ADF) with transfer payments, complemented by carbon taxation and subsidy mechanisms. Using a tri‑party evolutionary game model and system dynamics simulation, we identify two evolutionary stable states: a government‑led collaborative governance phase and a market‑driven circular endogenous phase. Results show that consumer preferences drive producers’ adoption of eco-design, and the policy mix of the ADF and transfer payments significantly enhances producer compliance, while consumer responsiveness to public education campaign exhibits an optimal sensitivity range. Based on the analysis of system feedback mechanisms, we further propose a four-stage evolutionary framework of EPR development (EPR 1.0–4.0), revealing the transition of the EPR system from exogenous policy-driven development to endogenous market-driven evolution. The proposed evolutionary pathway and integrated policy framework provide valuable insights for developing countries seeking to establish effective e-waste management systems.