The Effectiveness of Deposit–Refund Systems in Packaging Waste Management: A Panel Regression Analysis of EU Countries

Across the European Union, deposit–refund systems (DRSs) are increasingly seen as a crucial response to mounting waste management challenges, including low recycling rates and rising plastic pollution. By attaching a refundable deposit to beverage containers, these systems incentivise civilians to return packaging, thereby significantly reducing litter and improving the quality of recyclable materials. In the context of ambitious EU circular economy and waste reduction targets, DRSs play a key role in addressing resource inefficiency and environmental degradation. The empirical results obtained from a comprehensive panel regression analysis, which accounts for heterogeneity in policy effectiveness, reveal that the effectiveness of a DRS is not uniform across the packaging spectrum in the EU. The results indicate that the presence of a DRS and higher deposit values have a statistically significant and positive effect on packaging waste recycling rates, especially for plastic packaging waste, and that DRSs play a major role in improving and increasing the separate collection of packaging waste, ensuring good quality of the aforementioned fractions. In addition, some structural factors, such as population density and tourism intensity, have a strong impact on recycling efficiency. The findings highlight the importance of implementing deposit systems to achieve circular economy objectives and provide an empirical basis for improving waste management policies in the EU, thereby strengthening evidence-based decision-making.