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U.S. Department of Energy
Office of Scientific and Technical Information

Energy and economic impacts of mandatory deposits. [Beverage containers]

Technical Report ·
OSTI ID:7135650

The subject addressed by this study is the impact of proposed mandatory national beverage container deposit legislation--commonly referred to as ''bottle bill'' legislation. The study examines specific impacts that the imposition of a 5-cent refundable deposit on all beer and soft-drink containers (refillable bottles, nonrefillable bottles, and cans) would have on the total beverage-related industry. The study is not a comprehensive cost-benefit analysis of mandatory deposit legislation, but rather examines three major areas of potential impact, namely: (1) changes in annual energy consumption, (2) changes in capital investment requirements (in terms of fixed plant and equipment), and (3) changes in labor requirements (in terms of jobs and earnings). These impacts are developed for those industries in the total beverage system that would be most affected by changes caused by a mandatory deposit. The industries included are: retailers, beverage producers, and distributors, container manufacturers, and producers of basic steel and aluminum. This legislation would not ban any specific container type; rather, it would create an incentive for consumers to return all types of empty beverage containers for a deposit refund. However, the response of consumers to the deposit incentive (and its requirement to bring containers back) is expected to cause shifts among the types of containers sold. To develop the potential impacts, the report first projects energy, capital and labor requirements of the beverage industry assuming no deposit legislation is passed. These baseline projections are then compared to projections of what might happen after a deposit law. Results are reported for a 1982 steady-state situation, assuming that: (1) a law would be implemented in the late 1970s, and (2) by 1982 transitory effects will have been dissipated.

Research Organization:
Research Triangle Inst., Durham, N.C. (USA)
OSTI ID:
7135650
Report Number(s):
FEA/D-76/405
Country of Publication:
United States
Language:
English