Environmental & Natural Resource Economics 10th Edition by Thomas Tietenberg,Lynne Lewis

Exercise 1

Glass bottles can be either recycled (crushed and re-melted) or reused. The market will tend to choose the cheapest path. Which factors will tend to affect the relative cost of these options? Is the market likely to make the efficient choice? Are the "bottle bills" passed by many of the states requiring deposits on bottles a move toward efficiency? Why?