@techreport{Eggert2004economics,
abstract = {Deposit systems for one-way beverage containers are widely supported by green
activists and have been implemented in several countries. This paper analyzes
whether such deposit systems can optimally internalize the externalities that result
when consumers dump these containers. It is shown that two major problems arise
in a competitive market. First, the proceeds from bottle deposits tend to reduce the
price of beverages in a competitive environment and therefore lead to a departure
from a first best allocation. Second, the system usually requires producers and
vendors to run a system for taking back and recycling used containers, whose cost
vendors can only partly shift to consumers who return their bottles. While a
deposit system alone is never optimal, the paper proposes tax-deposit systems that
can implement a first-best allocation.},
author = {Wolfgang Eggert and Alfons J. Weichenrieder},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {H21; Q20; H23; 330; Getr\"{a}nkeverpackung; Verpackungs-Recycling; Internalisierung externer Effekte; Theorie},
language = {eng},
number = {1243},
title = {On the economics of bottle deposits},
type = {CESifo working papers},
url = {http://hdl.handle.net/10419/18882},
year = {2004}
}
