It is important to set up the rates of waste recycling-and-treatment fees to implement waste recycling policies in Taiwan. The studies in the past calculated the fees based on the cost data from recycling and treatment firms, but it would be difficult to judge the accuracy of the data. In order to analyze the accuracy of the data as well as the effect of the fee policy more effectively and directly, the method of experimental economics fulfilled this insufficiency. The method of experimental economics could simulate the effects of environmental management policy. Therefore, this study will invite the recycling-and-treatment firms and producers to hold a series of informal discussion meetings and do some experiments. This study would compare the results based on the equilibrium prices and quantities in Taiwan’s recycling market by setting different scenarios. In addition, the study would analyze the underlying recycling firm’s behaviors and main reasons.
Finally, this study would do the same analysis based on the equilibrium prices and quantities in production market, to tell the influence of waste recycling-and-treatment fees on firm’s operation decision and production cost due to fee payments. This study will also simulate the case of collusion, we will lead a free discussion between the firms in each scenario throughout the whole experiment. It is for analyzing the impact if the factories could collude with each other and trying to influence policies. That is to say, the results from this study not only provides the solution to the misleading data problems from firms, but also provides the appropriate policy suggestions by analyzing the effects of carrying out the policy through method of experimental economics.