Green Tax: The Bottle Bill

By Chris & Elissa

Background Info

What? The Bottle Bill

Why? Prevent Waste of Plastic Bottles

When? 1953 to now.

Who? Parts of the US, Australia, Canada and

Scandinavia

Examples of Current Laws

California 10¢: >24oz.and 5¢: <24oz.

Connecticut, New York, Delaware, Hawaii 5c

Michigan 10c

Australia 10c

Sweden Aluminum cans: 7¢ (voluntary) One-way : 14¢ -24¢ (voluntary) Refillable : 56¢ (voluntary)

What is the Market Failure?

• Definition

• Pollution = the result of a market failure

• Green tax is used to correct the social inefficiency

Proposed remedy

Bottle Bill system

Reverse Vending Machine

Effective Remedy?

Effectiveness

Incentive for proper disposal

Reduction of pollution

Statistics

Does the Proposed Remedy Internalize the externality?

YES! This bill has been proven effective as the 10c

deposit in Michigan produces recycling rates exceeding 95% in contrast to states where the deposit is a nickel.

Economic Model

Negative externality

Government intervention

Cartoons

Cartoons cont.

Cartoons cont.

Bibliography

Beverage container litter reduction: 69-77% in Maine ( p. 9, “State’s Experience With Beverage Container Deposit Laws Shows Positive Benefits.” U.S. General Accounting Office/Comptroller General of the United States, December 11, 1980); 84% in Michigan (“ Michigan Roadside Litter Composition Survey: Final Report.” Michigan Department of Transportation, Maintenance Division. December 1979); 70-80% in New York (“Final Report of the Temporary State Commission on Returnable Beverage Containers,” March 27, 1985).

Bottle Bill Resource Guide. 09 Mar. 2009 <http://bottlebill.org/>. Total litter reduction: 30% in Massachusetts (“ Bottle Bills in the 1980’s: A Handbook

for Effective Citizen Action,” Environmental Action Foundation, August 1987), 34-64% in Maine (U.S. General Accounting Office/Comptroller General of the United States, December 11, 1980), 47% in Oregon (p. 26, “Oregon’s Bottle Bill: The 1982 Report,” Oregon Department of Environmental Quality).

http://www.bottlebill.org/about/whatis.htm http://www.bottlebill.org/legislation/campaigns/resources/usa/2003-

ImpactOnBBStates.htm http://en.wikipedia.org/wiki/Reverse_vending_machine