How consumers of plastic water bottles are responding to environmental policies?

Caroline Orset (1) , Nicolas Barret (2) , Aurélien Lemaire (2)

1 ECO-PUB - Economie Publique
2 AgroParisTech

Although plastic induces environmental damages, almost all water bottles are made from plastic and the consumption never stops increasing. This study evaluates the consumers' willingness to pay (WTP) for different plastics used for water packaging. Successive messages emphasizing the characteristics of plastic are delivered to participants allowing explaining the influence of information on the consumers' WTP. We find that information has a manifest effect on WTP. We show there is a significant premium associated with recycled plastic packaging and organic and biodegradable plastic packaging. As there is no consensus on the plastic which is the most or the least dangerous for the environment, we propose different policies for protecting the environment. We discuss about the impact of these policies on consumer's purchasing decisions: switching one plastic packaging for another, or leaving water plastic bottles' market. We see that from the standpoint of consumer surplus, regulation is effective with certain environmental policies. Choosing between them then depend on the priorities of the regulator and pressure of lobbies.

Keywords: Consumer's willingness to pay; Bioplastic bottles; Regulatory instruments; Recycling plastic bottles; Information campaign; Biodegradable plastic bottles

Domains: Economics and Finance; Environment and Society

Caroline Orset, Nicolas Barret, Aurélien Lemaire. How consumers of plastic water bottles are responding to environmental policies?. Waste Management, 2017, 61, pp.13-27. ⟨10.1016/j.wasman.2016.12.034⟩. ⟨hal-01500900⟩