Changing the Deposit Law on Beverage Containers: A National Cost-Benefit Analysis: Manager's Brief

The Problem

It is not possible to apply the law to only certain types of containers. Such a decision would result in discrimination against different types of containers for the same kind of drink and would encourage people to buy beverages in containers that do not require a deposit, thus producing the opposite of the desired effect.

A Possible Solution

The Deposit Law could cover only non-alcoholic beverage containers and beer containers (but not wine or other alcoholic beverages), excluding milk containers. In such a way most of the containers on which a deposit is not worthwhile would be removed from consideration, without leading to undesirable consumption changes that might occur if the law were implemented only on certain types of bottles – such as encouraging consumers to switch from a type of bottle that requires a deposit to a type that does not.

The Result

The number of containers covered by the law would grow from approximately 500 million to approximately 900 million annually, and the implementation of the law would be more economically beneficial.