Circular Economy Transition in Electronic Waste Management: System Dynamics and Agent-Based Modeling of Extended Producer Responsibility Regulations

Eco-Business and Environmental Progress Journal

Mrittika Sen Gupta , Md Rasel Ul Alam, Ashraful Islam Albi

North South Univeristy, Dhaka, Bangladesh; University of the Cumberlands, Kentucky, USA; Daffodil International University, Dhaka, Bangladesh

Eco-Business and Environmental Progress JournalVol. 6, Issue 1July 30, 2026

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Abstract

Global electronic waste (e-waste) generation reached critical volumes up to 2025, creating acute environmental hazards and critical raw material supply risks. This study presents a multi-method System Dynamics (SD) and Agent-Based Modeling (ABM) framework to simulate Extended Producer Responsibility (EPR) regulations within closed-loop circular economy networks. Calibrated across 48 metropolitan jurisdictions using panel data from 2016 to 2025, our multi-agent model evaluates the systemic interactions between eco-modulated producer fees, deposit-refund incentives, and hydrometallurgical urban mining infrastructure. Simulation results demonstrate that combining eco-modulated EPR fees ($25/unit) with a mandatory $15 consumer deposit refund elevates e-waste collection rates to 88.4% while reducing informal scrapping leakages by 78.5%. Economic waterfall decomposition confirms net recovery profits of $1,630 per ton of processed circuit boards. Furthermore, integrating blockchain digital product passports enhances supply chain traceability, lowering verification overheads. Sensitivity and logit regression analyses establish deposit subsidies and drop-off convenience as primary drivers of consumer take-back behavior. Policy recommendations emphasize eco-design fee modulation, retail reverse logistics hubs, and tax credits for low-carbon chemical refining.

Keywords

Circular EconomyExtended Producer ResponsibilityElectronic WasteSystem DynamicsAgent-Based ModelingUrban Mining

Article Information

Published
July 30, 2026
Journal
Eco-Business and Environmental Progress Journal
Volume / Issue
6 / 1
Year
2026

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