The buyback strategy: An alternative to container deposit legislation

Abstract

This paper describes and defends a programmatic alternative to legislation that mandates the imposition of deposits on beer and soft drink beverage containers. We call this alternative a “buyback” program. It is essentially a consumer-financed and privately-administered recycling system that uses government as a financial intermediary. Like a deposit system, it can achieve any desired level of container recovery and reuse. In contrast to the deposit system, however, it can be phased in gradually; it can minimize the economic cost of the “backhaul” industry (e.g., collection, storage, transportation); and it can alter the long-run mix of container materials in accordance with economic common sense. If we as a society decide to undertake to recover for reuse almost all of our beverage containers, the buyback method is superior to the deposit method from nearly every point of view.