5. Conclusion
The EPR studies have revealed the governance challenge in urban waste management to capture the value from waste reduction and recycling, and sharing among all stakeholders in a complex and dynamic product system. Most of researches in this field addressed the induced change in product design or business model at firm level, but few studies have examined the systematic change that the new business models could trigger in the recycling sector, especially in developing countries.
The change of institutional settings based on EPR principle in China provided an excellent empirical case to study how new business models could emerge as response to the government interventions. The introduction of EPR for WEEE in China created an innovation niches for new business models in recycling sector and has triggered extensive change in the business relations in waste/recycling sector. It took an unexpected form in practice: not the producer doing the take-back themselves, but creating opportunities for various new business models to build links between the recycling and production/consumption regimes.
The most important technological change enabling the new business models is the use of ICT technology to bridge the knowledge gap among stakeholders including producers, recyclers, consumers, and the governments. This contributed to improve the transparency of EPR systems in the complex and fragmented product chains, and effectively respond to the market dynamics. Since most of the new business models are heavily relying on the subsidy from the government at present. The new business models in China shows the possibility to incorporate the informal sector in developing countries, which has been emphasized profoundly in literature on WEEE in recent years.