In a clear example of how difficult and contentious it is to implement recycling regulations, New York City has been sued over a law that is to take effect at the end of this month that “mandates free, door-to-door electronics collection, paid for by manufacturers.” According to Consumer Electronics Association (CEA) president Gary Shapiro:
“CEA filed suit along with the Information Technology Industry Council (ITI) to challenge the law. Manufacturers recognize that they have a key role in providing recycling opportunities for consumers, and have recycled billions of pounds of electronics through voluntary programs. However, they do not have the only role. The responsibilities and costs for electronics recycling should be shared among all stakeholders, including city and state governments, retailers, recyclers and consumers.”
Who should bear the cost of recycling programs? Eventually it will be the consumer, either through the taxes paid to local, state, and federal agencies to implement the programs or through higher prices for the gadgets they buy when manufacturers pass on the costs. This is part of the re-calibration of the costs of our modern, market economy. Gone are the days when unchecked consumption can continue without repercussions. By including the larger social costs, or negative externalities, that result from the production and consumption of a good or service, the true total cost of an activity can be better approximated. With the total cost now taken into account, the power of the free market then takes over as those activities that produce less pollution or other negative effects “cost” less for society at large. Production shifts toward the lower total cost goods. Since the once omitted social cost is now included in the total price of a product or service, competition moves businesses toward producing a cheaper good or service than their competitors, with the end result being benefits for the consumer and the environment.
Further Reading: Link to post about Extended Producer Responsibility
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