Bottled Water - Boon or Bane

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Contents

1. Introduction        

2. Outline of the problem        

3. Evaluation of Benefits and Externalities        

4. Private or Public Management Solutions        

5. Conclusion        

1. Introduction

„Bottled Water is a business that is fundamentally, inherently and inalterably unconscionable.” (Michael Brune 2012)

The Topic “bottled water” is an issue that is universally debated the world over.  There are different perspectives one can take. As Michael Brune (Gino et al. 2012), the executive of the Rainforest Action Network, pointed out in the citation above bottled water is in his view just ruthless and unethical. From the point of view of the International Bottle Water Association IBWA, which is a large trade association of companies in the bottle water industry, the world looks different. The association has a long list of members which includes leading brands from Nestlé to Danone (ef. IBWA 2015b), and campaign against attempts to ban or tax bottled water. They claim water to be the best alternative in drinking choice and outline their commitment in groundwater management and the small environment footprint of bottled water (ef. IBWA 2015c). The purpose of this paper is to give a short overview of the different perspectives of the issues surrounding bottled water and to determine the pros and cons of this topic. It will start with a brief outline of the problem and then focus on an evaluation of benefits and externalities. Finally it will take a look at possible solutions in private and public sector management.

2. Outline of the problem

In developed countries the consumption of bottled water is increasing steadily (cf. Gleick, Cooley 2009, p. 1). Depending on the area one reason may be a lack of safe tap water supply. Taste is also a known to be a factor in the rise in bottled water consumption due, for example, to a chlorine taste in local tap water (cf. Leivadara et al. 2008, p. 277). However to drink bottled water or tap water is, in most regions of the developed world, simply a matter of consumer choice. They buy bottled water because it makes them feel more energetic, fit and slim. Indeed it is the healthier choice in comparison to other drinks in terms of calories, caffeine, sugar, alcohol or other substances contained in drinks beverages (ef. Ahn 2007, p. 174). In 2004 the global consumption of bottled water reached 154 billion liters, which translates to an increase of 57 percent from the 98 billion liters consumed five years earlier. The United States is currently the leading consumer in bottled water. Even areas where tap water is safe to drink, the demand for bottled water continues to increase. However due to the increased consumption of bottled water, unnecessary garbage is produced (ef. Arnold, Larson 2006). There are two main packaging materials used for bottled water, glass and plastic. Because plastic is the most used material, this essay will focus on this plastic. Around eighty percent of all plastic bottles are made out of polyethylene (PET) (ef. Amiridou/Voutsa 2011, p. 281). Here the environmental aspects of plastics and production are coming into play and attention needs to be focused on the evaluation of the pros and cons of bottled water. Other issues to look at are the different types and the origin of the water, which fill the bottles (Gleick, Cooley 2009, p. 2). Regarding the origin and content of bottled water; the sources of tap water are generally the same. That is one reason why many commentators question if bottled water offers superior taste and is safer to consume (cf. Viscusi et al. 2015, p. 466). Although safe drinking water is claimed to be a human right, especially in developing countries access is often not developed (UN 2015). In those countries bottled water is mainly a symbol for health, safety and pure luxury (cf. Ahn 2007, p. 174). Due to extreme growing rates in bottled water industry, extending globalization and knowing water as being an essential food, the topic has become an increasingly controversial debate during the last view years (cf. Marcussen et al 2013, p. 334 ff). To decide if bottled water is more boon or bane the benefits and externalities need to be examined. An evaluation of this question is provided below.