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An In Medias Res Economic Cost‐Benefit Analysis of ACT Container Deposit Scheme
Author(s) -
Yu Sarah Yanyue
Publication year - 2021
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/1759-3441.12305
Subject(s) - scheme (mathematics) , container (type theory) , capital cost , business , cost–benefit analysis , economic analysis , cost analysis , capital (architecture) , opportunity cost , operations research , engineering , economics , agricultural economics , microeconomics , law , mathematics , mechanical engineering , mathematical analysis , electrical engineering , archaeology , political science , history
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.