A cost-benefit analysis of a deposit-refund program for beverage containers in Israel.
The paper presents a full cost-benefit analysis of a deposit-refund program for beverage containers in Israel. We examine all cost elements of the program--storage, collection, and treatment costs of empty containers, and all potential benefits--savings in alternative treatment costs (waste collection and landfill disposal), cleaner public spaces, reduction of landfill volumes, energy-savings externalities associated with use of recycled materials, and creation of new workplaces. A wide variety of data resources is employed, and some of the critical issues are examined via several approaches. The main finding of the paper is that the deposit-refund program is clearly economically worthwhile. The paper contributes to the growing body of literature on deposit-refund programs by its complete and detailed analysis of all relevant factors of such a program, and also specifically in its analysis of the savings in alternative waste management costs. This analysis reveals greater savings than are usually assumed, and thus shows the deposit-refund program to be highly efficient.
Lavee
Doron
D
Department of Economics and Management, Tel Hai Academic College, Upper Galilee 12210, Israel. doron@pareto.co.il
D001628:Beverages; D003247:Conservation of Natural Resources / Q000191:economics*; D003362:Cost-Benefit Analysis; D007557:Israel; D019064:Product Packaging; D012037:Refuse Disposal