Thursday, November 4, 2010

Study methods of electronics

The first step in development of this study was the identification of the primary aspects of the patchwork system that potentially cause the costs to be higher than would otherwise be the case under a comprehensive national system (i.e., what we are calling the cost “drivers”). These cost drivers were separated into two basic categories. The first category, which ultimately proved easier to quantify, focuses on increases in Administrative and Compliance costs associated with the multiple state programs. The second category of costs is presented on a qualified basis and includes the higher per unit Materials Handling and Processing Costs attributable to having only some states impose recycling requirements versus the economies of scale that would be realized under a national system. For purposes of identifying whether a state patchwork or single national electronics recycling system would incur higher costs, the study assumed a set of generic characteristics as shown in Part 3. Each cost driver was analyzed in relation to a hypothetical national program, and costs that clearly would not exist in a single national program are called “dead weight” costs. Where costs or cost savings were not clearly supported by collected data, discussion of these costs were either removed from the study or presented only on a qualified basis

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