• "I continue to enjoy your blog.
    It's excellent." -- Rodney Hide, Member of Parliament, and Leader of the ACT Party, New Zealand.


  • "I now live, breathe, and occasonally poo economics..." — former student

    For Upscale Clothing on-line,
    Visit www.Blaec.com


    Contact Information

    Facebook: John P. Palmer
    "We saw a lot of road kill and thought of you." —my sister

    Podcasts of My Intro Economics lectures
    (in .wma format)
    For my 2005 Radio Economics MP3 podcasts, go to the bottom of the page that lists the lecture podcasts.



    Canada


    United States


    Israel






Trading innovation from bettertrades helps to educate individuals on how to create cash flow by trading stocks and options. FreddieRick is the founder of Better trades.

Depending upon how much you earn, you can get $100, $250, or $500 in cash advance. CashNetUSA has the solution you need for Alaska payday loans.

My Photo
Blog powered by TypePad

« IAF Fly Over Auschwitz | Main | Would You Holiday at a Campground in France? »

August 26, 2008

What Is the Externality Connected with Water Bottles?

The City of London, Ontario, has recently decided to halt the sale of water in individual plastic water bottles at city-owned and city-operated facilities. I am struggling to understand the rationale for this policy.

  • Are plastic bottles more of a problem in landfill sites than any other garbage? First, I really doubt they are. But even if they are, why just water bottles? Why not other plastic bottles, too? And why not glass bottles? And if plastic bottles are more of a problem for landfill sites than any other garbage, why not impose a Pigouvian tax on the production of all plastic bottles, rather than try to ban the use of individual water bottles?
  • Is it because plastic is produced from crude oil (and that is somehow bad?)? Again, why just water bottles? And why do prices not fully reflect the social costs of using oil to make plastic bottles? Unless the use of oil is somehow significantly under-priced, there is no externality involved with using oil to produce plastic bottles.
  • As I wrote two years ago, unfiltered tap water is noticeably different from filtered water. Ever since the e coli water contamination in Walkerton, Ontario, killed seven people and seriously harmed many others, communities throughout Ontario and elsewhere have increased their use of chlorine in public water supplies to the point that the taste borders on being unacceptable. Tap water from drinking fountains is not "just as good" as bottled or filtered water.
  • Using plastic bottles just seems so wasteful to some people. They think we should not use plastic once, as in individual water bottles, and then discard it. Quite frankly, I agree. I cannot bear the thought of paying so much for some filtered water, and I don't do it very often. Instead, I use stainless steel refillable bottles, which I fill with a concoction of filtered tap water, club soda, and a hint of lemon juice or Gatorade or something (We recently disposed of our bottles that contained BPA). But unless there are significant externalities involved, I am perfectly willing to let others spend their money on bottled water. Not using plastic single-use water bottles does not fall into the category of "merit goods", a concept which I find objectionable in its own right.
  • Nevertheless, there are times when re-hydration is important. If you don't want to drink pop, getting enough water from a drinking fountain is not always possible, desireable, or convenient. Buying a bottle of water from a variety store or vending machine is sometimes an optimal choice.

I hate to say it, but it looks to me as if the London City Council has been dominated by control freaks who want to tell others how to lead their lives. (See this and other recent postings at London Fog for more). Without adequate justifications other than the vague and empty, "it's good for the environment", this policy is totally unacceptable. Let us hope it doesn't spread.


TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00e54ecbb69a883300e5541f29958833

Listed below are links to weblogs that reference What Is the Externality Connected with Water Bottles?:

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Banning bottled water really raises my libertarian hackles.

If Professor Palmer asked me this question on an exam, thereby forcing me to create a story, I'd start with the transportation costs with it's fossil fuel associated pollution and trot out the missing Pigouvian tax. This begs the question of where the difference is between bottled water and fizzy-sugary drinks. Perhaps it's that colas may rely on _local_ bottling plants, mixing the syrup and fizz with _local_ water thereby avoiding long distance shipping.

The comments to this entry are closed.

  • Economists are Gods --- J.B.

    "Palmer's is one of my absolute favorite econ blogs." -- Ian

    Note: I do not necessarily endorse any of the products advertised on this site.

    I love your blog! It is the first one I read every day -- Eric F.


    Always an informative, interesting and sometimes even amusing read! —BBS

    Click here to order from Amazon.ca



    "I really enjoy your site, and I'm planning to assign your blog to my students. I love to find "real world" examples to supplement the text, and your blog is terrific for that. Thanks for writing it!" -- J.A.B.
    eXTReMe Tracker



  • Adloyada
    Anomaly UK
    Antitrust Hotch-Potch
    Aplia Econ Blog
    Asymmetric Information
    Atlantic Blog
    Professor Bainbridge
    The Becker-Posner Blog
    The Big Picture [B. Ritholtz]
    BlogNetBiz.com Econ aggregator
    Blue-Blogging Soapbox
    Calculated Risk
    A Canadian Econoview
        (Brian Ferguson)
    Captain Capitalism
    The Cato Blog
    Club for Growth
    A Constrained Vision
    The Corner [Nat'l Rev.]
    Coyote Blog
    Currency Trading.Net
    The Custom House Ben Muse
    Brad DeLong
    Discarded Lies
    Division of Labour
    Daniel Drezner
    EconDirectory.Com
    Economics and...
    Economist's View Mark Thoma
    Economonitor at RGE Monitor
    Econopundit [Steve Antler]
    Effect Measure [Pub. Health]
    EU Referendum
    David Friedman's Ideas
    David Frum: Nat. Rev. Blog
    Essential Communicator
          [Jason Keenan, aka "Scoop"]
    The Gods of the Copybook
    Grandinite
    Gregg Easterbrook @ ESPN
    Stephen Hicks
    Rodney Hide,
          New Zealand MP
    Hispanic Pundit
    Houston's Clear Thinkers
    Joanne Jacobs
    Infectious Greed
    Judith Klinghoffer
    Knowledge Problem
    Kruse Kronicle
    Language Log
    The Latecomer
    Let's Fly Under the Bridge
    Little Green Footballs
    Macroblog
    Michelle Malkin
    Ben Muse (econ, Alaska)
    The New Economist
    New Virginia Churchman
    Normblog
    Off-Wing Opinion
    Organizations and Markets
    Out of Control (Reason)
    Outside the Beltway
    Overcoming Bias
    Overheard at Western
    Overlawyerd
    phi beta cons
    Poor and Stupid
    Power Line
    Priv. Sector Dev. Blog
    Provocateur
    Radio Economics
          (podcasts & econ interviews)
    A Random Walk
    The Road Kill Diaries
    Lew Rockwell's Blog
    Nouriel Roubini
    Sabernomics
    Felix Salmon
    Brad Setser
    Roger Simon
    Sports Law Blog
    Stumbling & Mumbling
    TCS Daily
    Tiger Hawk
    Michael Totten
    Truck and Barter
    True Dough
    Vigesimal Pundit
    The Volokh Conspiracy
    Wall Street Examiner
    Not Even Wrong
       Peter Woit on Astrophysics

    Ezra Levant's Website
    Mark Steyn in Sun Times


    Economics Lecture Notes On-line