Economic instruments and the efficient recycling of batteries in Delhi and the National Capital Region of India

Abstract Lead acid batteries generate hazardous lead waste with environmental and health implications. The deposit refund system for recycling in Delhi provides a discount to consumers on purchasing new batteries and returning used batteries to retailers for recycling. The retailers determine whether batteries are recycled in an environmentally friendly or unfriendly manner by selling them to manufacturers or to unorganized scrap dealers who then sell to unregistered smelters. This study finds that the economic instrument that brings used batteries into recycling works well. Organized recycling is limited, since retailers prefer selling used batteries to the informal sector because of higher prices, lower storage costs and taxes. In addition, we consider policy instruments like a green tax on batteries with a refund when the manufacturer ensures environment-friendly recycling and fiscal incentives to organized smelters to increase production.