Deposit Return System in Mongolia: Calculation the Optimal Return Fee for RGB

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Date

2024-05-10

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German Mongolian Institute for Resouce and Technology

Abstract

This thesis explores the feasibility and implications of implementing a Glass Bottle Deposit Refund System (DRS) in Mongolia, focusing on manual and automated collection methods. Detailed cost breakdowns shed light on the financial considerations, comparing the efficiency of manual and automated approaches. Notably, Mongolia's widespread collection model is manual in the beverage and food companies that use the glass bottles to produce their productions as a basis for estimation. Analyzing market size is critical for investment forecasting. The optimal return fee for Returnable Glass Bottles (RGB) balances operational costs and consumer incentives, considering import costs, manual collection expenses, and potential recycling revenue. Environmental benefits of DRS implementation, particularly with automated systems, are emphasized. This study proposes an approach, advocating for a hybrid model initially, with potential for full automation later. By implementing these recommendations, Mongolia can advance its waste management goals and foster environmental responsibility.

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