Reference no: EM132144638

The State of Minnesota passed a law requiring paint manufacturers to recycle paint. Under current law, consumers of paint take unwanted paint to county or state recycling centers for disposal. Starting in the summer of 2014, consumers will be able to take unwanted paint to volunteer paint and hardware stores that will then send the paint to be recycled. Paint manufacturers will pay a hazardous waste fee to cover the cost of recycling. The state estimates this that 700,000 gallons of paint get recycled per year with another 500,000 gallons await recycling or end up illegally disposed. The state estimates this program will cost paint manufacturers about $5 million per year. In other states, the price of paint under such a program raises about $0.75 per gallon.

a- According to the Star Tribune, “The new rules will shift the cost of post-consumer paint waste onto manufacturers instead of counties, which currently collect oil and latex house paint from consumers and sometimes charge a fee for the service…..With the new law, Minnesota will be only the sixth state to have manufacturers foot the bill for post-consumer house paint waste.” (Source: “A Shake-UP in Paint Recycling”, Minneapolis Star Tribune, Wednesday, July 24, 2013, Section D, page one). To what extent (if any) are these claims valid? Explain.