Abstract: Extended producer responsibility holds producers responsible for collecting,recycling and reusing. The rate mode operated by the manufacturer and the tax mode operated by the government are the prevailing forms of realizing extended producer responsibility. Comparing two different modes,the regulator determines the optimal policy on the basis of decision-making and performances. Considering the realistic background,we divide environmental costs into landfill costs and disposal costs,and incorporate different efficiency of the recovery system. In a complex-cost environment,we examine the decision-making,performances,and evaluate two different modes-the rate mode and the tax mode. The results are somewhat different from the previous conclusions:under the decentralized decision making,the tax mode is better than the rate mode,but the participants cannot reach the same preferences; under the centralized decision making,it is hard to judge which mode is better because they depend on different environmental costs and production costs. Thus,cost combination is the key factor to determine which mode is better and the dynamic environmental costs decide the take-back rate.