An In Medias Res Economic Cost‐Benefit Analysis of ACT Container Deposit Scheme

Sarah Yanyue Yu

Economic Papers, 2021, vol. 40, issue 1, 78-90

Abstract: The paper presents an in medias res economic cost‐benefit analysis of a Container Deposit Scheme (CDS) for beverage containers in the Australian Capital Territory (ACT), Australia. The paper examines all cost elements of the scheme – scheme design and administration, scheme coordination, beverage industry compliance, household participation, business participation and container redemption infrastructure and operating costs. The paper also examines all potential benefits – avoided waste collection and transport costs; avoided material recovery facility processing cost; avoided landfill cost; avoided street sweeping cost; value of avoided litter; and value of recyclates. A wide variety of data sources is employed, and some of the critical issues are examined via several approaches. The main finding of the paper is that the ACT CDS is clearly economically worthwhile. The in medias res CBA of the ACT CDS shows the scheme to be highly efficient and thus recommends the continuation of the scheme.

Date: 2021
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https://doi.org/10.1111/1759-3441.12305

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