If Tap Water is Better Why Ban Bottled Water?

An article in the NYT here reports the fascinating case about a small town of Bundanoon in Australia that has effectively banned the sale of bottled water within its jurisdiction. I agree with some of the intended effects but think that a number of presumptions have been made and the policy prescription unduly restrictive and probably ill-considered.

I maintain the view that in many developing countries, bottled water is an urban luxury while in high-income countries, the purchase of bottled water is a reflection of preference for a marked product. It is also true that many people ascribe to bottled water, a level of superiority to tap water that it neither has nor deserves. water is an increasingly important resource and the extraction by bottling companies is receiving widespread attention. The main concern is that bottled water leads to the a large number of plastic bottles and the transportation all over the wold leads to the emission of pollutants and earth-warming gases.

This is a plausible argument that is acceptable by many people but like in earlier blog posts such as this one, I depart company when it argues for banning of bottled water. To rehash the arguments, it has been demonstrated that tap water suffers a bad reputation when in reality it is safe enough to drink in most places in the world. What bottled water marketers perhaps should be compelled by policy is to internalize the costs of the pollution that comes from the containers (whether glass or plastic). I am not sure that these two should be treated as perfect substitutes when one is consumed as a luxury product. Indeed, the best way for bottled water to pay its way is for the city fathers of Bundanoon to support the creation of a carbon tax which would then ensure that bottled water finds its rightful prices. A ban is very statist and altogether unwise. If the belief is really that tap water is better, then why ban the inferior product?