Thesis Public Defense | VNP30 - Lê Thị Mỹ Quỳnh

 Impact of Extended Producer Responsibility (EPR) policy on area of plastic dump site in Indonesia

Student: Lê Thị Mỹ Quỳnh, VNP-30

Supervisor: Prof. Dr. Lorenzo Pellegrini & Dr. Trương Đăng Thụy

Abstract:

Plastics are deeply embedded in modern economies due to their versatility, durability, and low cost, yet they also cause long-term environmental damages, which require environmental policies to counter this issue. This thesis investigates the correlation between Indonesia’s Extended Producer Responsibility (EPR) policy and the dynamics of plastic dump sites across 34 provinces from 2017 to 2021. Leveraging satellite‑derived data, from Global Plastic Watch (GPW) and provincial macro‑economic indicators the research adopts a fixed‑effects regression model to evaluate changes in plastic dump-site area and its growth rate before and after the enactment of EPR in a developing country context – Indonesia. The findings indicate that the introduction of EPR is associated with a statistically significant reduction in the expansion of plastic dump sites, even after controlling for GDP, population, industrial activity, and foreign direct investment (FDI). Robustness checks incorporating shocks in plastic waste trade balance and industrial-FDI interaction terms reveal that after EPR implementation, the positive early-stage change in environmental performances are most pronounced in provinces with higher industrial concentration and greater FDI inflows, suggesting capacity-dependent compliance and technology transfer mechanisms. While Indonesia’s EPR remains voluntary, the results imply that it is associated with corporate behavior and environmental outcomes. This study provides early empirical evidence on the presence of EPR in a developing-country context could contribute to better environment and highlights the importance of industrial structure and international investment in enabling circular-economy transitions.

Key words: Extended producer responsibility, Environmental policy, Eco-design, Plastic waste, Plastic dump site