Economic Analysis of Packaging Waste Reduction

Abstract

This paper examines the rationale for regulating packaging waste and finds two goals that survive careful analysis: saving the social costs of waste disposal and reducing pollution from the manufacture of the packaging materials. We find that source reduction has reduced the disposal of soft drink packaging waste more than either mandatory deposit-refund programs or household recycling. The benefits of packaging reduction justify some well-run recycling programs but they do not justify mandatory deposit-refund programs. We suggest two policies that will promote efficient packaging waste reduction.