Refillable versus non-refillable containers: the impact of regulatory measures on packaging mix and quality choices |
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| Institution: | 1. Shanghai University of Finance and Economics, Department of International Economics and Trade, College of Business, 100 Wudong Road, Shanghai, China;2. York University, Department of Economics, Faculty of Liberal Arts and Professional Studies, 1084 Vari Hall, 4700 Keele St., M3J 1P3 Toronto, Canada;1. York University and RCEA, Canada;2. University of Zurich and CEPR, Switzerland;3. Board of Governors of the Federal Reserve System, USA;4. University of British Columbia and NBER, Canada;1. Department of Industrial Engineering, Alma Mater Studiorum – University of Bologna, Viale Risorgimento 2, 40136, Bologna, Italy;2. Department of Decision Sciences, Lam Family College of Business- San Francisco State University, 1600 Holloway Ave, San Francisco, California;3. CIRI – AGRO, Interdepartmental Center for Industrial Research of the University of Bologna, Via Quinto Bucci 336, 47521, Cesena (FC), Italy |
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| Abstract: | With the continually declining percentage of soft drink sales in refillable bottles in favour of cans and PET bottles, despite a growing soft drink market, governments have become increasingly concerned with the alleged more environmentally harmful impacts of throw-away convenience packaging and tried to enact policies to induce consumers to switch to refillable glass bottles. In many cases, fully or partially refundable deposits have been opted for to provide consumers with the incentive to properly dispose of packaging, but not to switch between different container types, and thus, they may not constitute the most desirable solution. The effects of various regulatory measures on producers’ choices of packaging quality and mix in the presence of consumers with differing demand intensities are analyzed to discern the least distortionary alternative. |
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