On Mandatory Deposits, Fines, and the Control of Litter
13 Pages Posted: 19 Sep 2010
Date Written: 1988
Mandatory deposits on beverage containers have received enthusiastic support among environmentalists as a means of controlling litter. In modeling the effects of a deposit on litter generation and recovery it is found that this enthusiasm is well justified. Interestingly enough, few supporters of deposits seem to realize how justified their support is, as evidenced by their lack of enthusiasm for eliminating the littering fine which serves to dilute the effectiveness of the deposit. The most efficient solution possible when a fine is combined with a deposit is shown to require less littering, but more litter, than is an efficient solution when relying entirely on the deposit.
Keywords: litter, environmental fines, environmental deposits, mandatory deposits, control of litter
JEL Classification: Q28, Q51, Q52, Q58
Suggested Citation: Suggested Citation