Social costs of packaging competition in the beer and soft drink industries
One-way containers have enabled consumers to shift some costs on to society by forcing society to carry the burden of waste disposal. Principal costs include urban garbage collection and disposal and litter collection. The effects of non-price competition, particularly the introduction of non-returnable cans and bottles, on the competitive structure of the beer and soft drink industries are traced. Eventually the non-returnable packaging tactic was successful for national brewers; their profits increased as did their share of the industry's market. In the soft drink industry, the introduction of cans and non-returnable bottles by small companies challenged Coca-Cola's long-held dominant position. Social costs based on extra containers and municipal refuse expenditures understate the true costs, because they exclude ecological and health damage and the effect of litter on psychological well being. The costs, though understated, represent from 2 to 8% of sales, indicating a substantial degree of private-to-social cost shifting. (DCK)
- Research Organization:
- Oregon State Univ., Corvallis
- OSTI ID:
- 7269674
- Journal Information:
- Antitrust Bull.; (United States), Vol. 20:4
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
BEVERAGES
CONTAINERS
COST
WASTE DISPOSAL
CHARGES
ECONOMICS
ENVIRONMENTAL EFFECTS
PACKAGING
SOCIO-ECONOMIC FACTORS
SOCIOLOGY
FOOD
MANAGEMENT
WASTE MANAGEMENT
290200* - Energy Planning & Policy- Economics & Sociology
320305 - Energy Conservation
Consumption
& Utilization- Industrial & Agricultural Processes- Industrial Waste Management