An Expensive Paradox: Externalities & Implications of the Bottled Water Industry in the United States

Date
2011
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Haverford College. Department of Economics
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Award
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eng
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Haverford users only
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Abstract
In a country with access to one of the cleanest municipal water supplies in the world, the proliferation of the bottled water industry in the past twenty years in the United States has had profound impacts on the environment, consumer culture, and communities. This paper provides a survey of the literature regarding the development of the bottled water market, current industry practices, and the industry-related actions and inaction of consumers and government agencies in the United States. First, this paper provides a variety of perspectives on the reasons for exponential consumer demand and industry growth. Then, it sheds economic insight on some of the long term costs of the unsustainable practices for the industry, government agencies, and consumers. Finally, several recommendations are made regarding potential ways to restructure the market in order to slow or stop the continued costs of industry-related externalities.
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