Chapter 28, Problem 1DQ

To determine

The ways through which the deposits affect the incentive of an individual to recycle these products. Is it possible for bottle and can deposits to be too high in quantity on grounds which will induce too much recycling?

Explanation of Solution

• Some states make retailers collect deposits of a nickel or a dime on every can and bottle they sell. These deposits exceed the economic value of cans or bottles.

• Many provisions related to the deposit of bottles and cans increase the reasons for an individual to recycle these products. This is because these bottles and cans would lead to an increase in the price of bottles and cans for the consumers. They will incur an additional cost of the actual product packed in the bottles and cans.

• If an individual saves the bottles and cans that they have, then they will not face any additional cost of buying a product that comes in bottles or cans.

• No, it is not possible for the bottle and can deposits to be too high, on grounds that they induce too much recycling. This is because recycling also incurs a cost and excessive recycling is never fruitful.

Economics Concept Introduction

Concept introduction:

Recycling:

Recycling is the process of utilizing waste materials through treatment. It enhances sustainable use of resources and helps in regenerating the waste resource in a new form.