Turning Waste Into Value: A Design Strategy for Sustainable Deposit-Refund Systems

The challenge of single-use plastics (SUPs) and packaging waste has intensified in recent years, with deposit-refund systems (DRS) emerging as one of the most effective solutions. Although DRS improve recycling rates, their adoption is often hindered by high setup costs and uncertain cost-effectiveness. This study addresses a central question in waste management: how to design economically viable and scalable DRS. Adopting a design science research strategy, the study proceeds in three phases. First, it reviews existing DRS operating modes and identifies key design parameters. Second, it tests a set of recommendations, 'technological rules' in design science, through a scenario-based analysis applied to a DRS for polyethylene terephthalate (PET) in Italy. Third, it generalises the results into a transferable adoption procedure. The findings reveal trade-offs between environmental ambition and economic sustainability, underscoring the importance of designing systems that are adaptable to specific national and regional contexts. The study provides policymakers with a structured procedure for adopting economically viable DRS aligned with circular economy goals.