A Social Benefit - Cost Analysis of Mandatory Deposits on Beverage
نویسنده
چکیده
This paper presents a social efficiency analysis of mandatory deposits on beverage containers. Five kinds of resource effects are identified, evaluated and added up: (1) litter (both pickup and “eyesore” costs) ; (2) solid waste collection; (3) container costs; (4) production and distribution costs; and (5) consumer convenience. It is shown that the desirability, on efficiency grounds alone, of mandatory deposits is not indisputable; it depends critically on one’s evaluation of (1) the average value of the time it takes consumers to return empty containers and (2) the average value of the “eyesore” benefit of a dramatically reduced (i.e., by around three-fourths) volume of beverage container litter.
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