© Ann Kiernan

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Specification:

  • Externalities

Click to read the article below and then answer the questions:

Why are caps now attached to bottles? Blame the EU

  • What externalities problem does the regulation requiring lid tethering aim to solve?

  • Are there any unintended consequences of the regulation?

  • What alternative solutions can you think of? Which solution do you think best addresses the externalities problem? How do you expect the costs and benefits of an alternative programme compare to the lid tethering requirement?

Ariel Slonim at MRU’s Econ in the News

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