PACKAGING WASTE AND THE ENVIRONMENT - ECONOMICS AND POLICY

This paper addresses the problems associated with packaging waste. After establishing the extent of the problem, a brief discussion follows of how to choose the right target for any policy measure. This is followed by reviews of command-and-control measures taken in Germany, the EC and the Netherlands. Under the heading of market-based instruments, deposit-refund schemes, a recycling credits scheme and packaging charges currently in place in the UK, Denmark, the USA and Australia are examined. The remainder of the paper concentrates on the introduction of a packaging charge reflecting disposal costs but taking account of recycling rates for different packaging. Before presenting such charges calibrated for selected beverage containers in the UK, Denmark, Sweden, Japan and South Africa, the paper discusses the practical problems surrounding the available data. The paper concludes by proposing that such a packaging charge offers a more cost-effective solution to the problem of packaging waste and litter than does regulatory legislation.