How is EPR different from CSR?
CSR – corporate social responsibility – promotes voluntary reduction of environmental harm. However, voluntary approaches fail to address the powerful financial incentives that often cause environmental harm. OECD research calls into question the environmental effectiveness and economic efficiency of voluntary approaches. EPR, in contrast, focuses on changing the policy framework – the rules of the game – so that it is cheaper (or more profitable) to protect the environment. It changes the financial incentives so that self-interest aligns with environmental protection. And by removing externalities, it increases economic efficiency.
