green tax proposal - bottle bill
TRANSCRIPT
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