Turning Waste Into Value: A Design Strategy for Sustainable Deposit‐Refund Systems

ABSTRACT The challenge of single‐use plastics (SUPs) and packaging waste has intensified in recent years, with deposit‐refund systems (DRS) emerging as one of the most effective solutions. Although DRS improve recycling rates, their adoption is often hindered by high setup costs and uncertain cost‐effectiveness. This study addresses a central question in waste management: how to design economically viable and scalable DRS. Adopting a design science research strategy, the study proceeds in three phases. First, it reviews existing DRS operating modes and identifies key design parameters. Second, it tests a set of recommendations, ‘technological rules’ in design science, through a scenario‐based analysis applied to a DRS for polyethylene terephthalate (PET) in Italy. Third, it generalises the results into a transferable adoption procedure. The findings reveal trade‐offs between environmental ambition and economic sustainability, underscoring the importance of designing systems that are adaptable to specific national and regional contexts. The study provides policymakers with a structured procedure for adopting economically viable DRS aligned with circular economy goals.