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Refillable versus non-refillable containers: the impact of regulatory measures on packaging mix and quality choices

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  • Ferrara, Ida
  • Plourde, Charles

Abstract

With the continually declining percentage of soft drink sales in refillable bottles in favour of cans and PET bottles, despite a growing soft drink market, governments have become increasingly concerned about the alleged more environmentally harmful impacts of throw-away convenience packaging and tried to enact policies to induce consumers to switch to refillable glass bottles. In many cases, fully or partially refundable deposits have been opted for to provide consumers with the incentive to properly dispose of packaging, but not to switch between different container types, and thus, they may not constitute the most desirable solution. The effects of various regulatory measures on produceers' choices of packaging quality and mix in the presence of consumers with differing demand intensities are therefore analyzed to discern the least distortionary alternative.

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File URL: http://www.sciencedirect.com/science/article/B6VBM-4CMW0PH-1/2/304225ad3ce4444c5f535cea5af073e9
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Bibliographic Info

Article provided by Elsevier in its journal Resources Policy.

Volume (Year): 29 (2003)
Issue (Month): 1-2 ()
Pages: 1-13

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Handle: RePEc:eee:jrpoli:v:29:y:2003:i:1-2:p:1-13

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Web page: http://www.elsevier.com/locate/inca/30467

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  1. Besanko, David & Donnenfeld, Shabtai & White, Lawrence J, 1987. "Monopoly and Quality Distortion: Effects and Remedies," The Quarterly Journal of Economics, MIT Press, vol. 102(4), pages 743-67, November.
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  3. Eric Maskin & John Riley, 1984. "Monopoly with Incomplete Information," RAND Journal of Economics, The RAND Corporation, vol. 15(2), pages 171-196, Summer.
  4. Srinagesh, Padmanabhan & Bradburd, Ralph M, 1989. "Quality Distortion by a Discriminating Monopolist," American Economic Review, American Economic Association, vol. 79(1), pages 96-105, March.
  5. Champsaur, Paul & Rochet, Jean-Charles, 1989. "Multiproduct Duopolists," Econometrica, Econometric Society, vol. 57(3), pages 533-57, May.
  6. Mussa, Michael & Rosen, Sherwin, 1978. "Monopoly and product quality," Journal of Economic Theory, Elsevier, vol. 18(2), pages 301-317, August.
  7. Dinan Terry M., 1993. "Economic Efficiency Effects of Alternative Policies for Reducing Waste Disposal," Journal of Environmental Economics and Management, Elsevier, vol. 25(3), pages 242-256, November.
  8. Russell Cooper, 1984. "On Allocative Distortions in Problems of Self-Selection," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 568-577, Winter.
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