Negative Externalities of Bottled Water


During the summer of 2009, the sales of bottled water dropped drastically. This was a result of the increase in awareness regarding the detrimenal effects of plastic waste from the bottles on the environment and the possibility of negative health effects on consumers. Consumers learned about the chemicals in the plastics used rubbing off into the water, people ingesting them and having health problems. Consumers also realized how disastrous these one-time use plastic bottles are for the environment. They take up massive amounts of space in landfills take hundreds of years to decompose. This newfound knowledge caused consumers to start using more tap water and reusable water bottles to reduced costs after the 2008 recession and help the environment. As the demand for bottles water decreases, supply curve shifts up and to the left which lowers the amount produced. Using reusable bottles benefits the consumer’s health and pockets, by saving them money and benefits society as a whole by helping reduce the amount of waste entering the environment.

1 Comment »

  1. caiq Said,

    November 29, 2016 @ 2:15 am

    Because of the negative externality, the producers’ cost will increase. Also, since the bottled water is bad for people’s health, so the demand will decrease. This is a good example of externality. And the producer will pay the extra cost which is social cost. In the future, the market of bottled water will be worse.

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