National Effects of a Beverage Container Deposit Law

A 1980 GAO study assessed the potential effects of a national beverage container deposit law. For the study, GAO assumed that all deposit containers would be returned at a 90-percent rate, that the container mix under a national law will be 50 percent refillable bottles, and that there would be a temporary lull in sales growth. These assumptions were borne out by the experience in States which have such deposit laws. Many beverage containers which previously had been discarded would be returned for reuse or recycling. GAO estimated that there would be 20 percent less litter than without such a law. Solid waste would be reduced by about 4 percent by weight because of the increased reuse and recycling of beverage containers. The benefits of reduced litter and solid waste are difficult to express in financial terms; however, some estimates can be made of reduced litter pickup costs and of the decreased pressure on landfills. In addition, energy use in the beverage industry would fall, as would the use of raw materials. Industry revenues would increase because of unclaimed deposits and scrap material sales. The change would require industries to increase their storage facilities and labor to handle the increase in empty containers returned for deposit redemption. GAO estimated a first-year increase of about $700 million in incremental industry costs.