18 Nov '11, 3pm

gila ah

gila ah

But how much does it cost to deliver the water from halfway around the world? Let’s assume that the cost of transportation is based on our fossil fuel use assumptions above and that the bottle producer and the shipping company charge double their material cost. I am not sure if these are valid assumptions, but they are just assumptions after all… So, 160g of fossil fuels to make the bottle, 2g to deliver it to Fiji, and 81g to deliver the full bottle to the US. From economics we learn that fixed costs (equipment, etc.) in high-volume production are negligible in the long run so it is pretty safe to assume that the cost of making and delivering the bottled water is linked to its variable cost. In this case the variable cost is the fossil fuel (since the water comes out of the ground for free), which amounts to 0.243 kg. A standard oil barrel holds 159 liters and one liter o...

Full article: http://alvinology.com/2008/04/15/worlds-most-expensive-bo...

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