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Container deposit schemes work – and that's what matters

By Tristan Knowles - posted Tuesday, 26 March 2013


Any change in demand, however minor, has a significant impact once a business operates at this scale.

Arguments about efficiency are just a convenient way for these companies to look like they're actually concerned about wider economic issues.

They're not. This is entirely about the direct impact on revenue and profit for beverage manufacturers.

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No policy is perfect. All policies result in costs and benefits for different sections of society.

When it comes to the environment, the financial costs of action may often outweigh the financial benefits because the environmental damage, especially incremental damage, can be difficult to put in a budget.

In fact, uncertainty about the cost of environmental damage is highlighted by the Productivity Commission's report into waste in Australia.

Because it is difficult to measure, the argument is always going to be stacked against the environment.

Rather than tailor a public policy to suit the bottom line of a massive multinational soft drink company, let's think about what we want as a society, then cost the options.

Do we want a clean environment? Is it really a big deal if we pay 10c extra for drinks bought in disposable containers, especially when we can return the bottle and get our 10c back?

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The economics of healthcare come into play here too. Many of the drinks sold in disposable containers are leading more and more Australians to rely on our public health system. Shouldn't this cost be considered alongside Coca-Cola's bottom line?

We've already plucked the low hanging fruit with kerbside collection and recycling. To get further improvements in waste reduction, we need to look to other methods that reduce the amount of waste entering landfill and our environment.

Container deposit schemes have been shown to be effective and popular.

If Coca-Cola's legal actions demonstrate anything, they demonstrates the need for a national container deposit scheme.

It's time to start talking about effective ways to reduce waste. If the beverage giants can suggest an alternative that is as effective as container deposit schemes, I'm all ears.

Tristan Knowles is an economist with the Australian Conservation Foundation

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About the Author

Tristan Knowles is an economist with the Australian Conservation Foundation

Creative Commons LicenseThis work is licensed under a Creative Commons License.

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