CO2 Emission of Water
Bottles
The Economics of Sustainability and the Environment
Fall 2013
Wonjoon (Michael) Choi
Why particular topic?
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Learned from the course, ‘Introduction to
Sustainability’, in the last spring semester
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We the US consume about 1,500 water
bottles every second; at least, 50 million
water bottles are thrown each day.
My Intention
1. Comparing the data on how much water
bottles are used in different parts of the world
 2. Hypothetically, relate those data with the
data on GDP per Capital or Population
Growth Rate or Energy (oil production) (any
correlation?)
 3. Some other approaches in regard to
figuring out how much CO2 emission water
bottles generate
 4. Few ways to reduce overdose CO2 emission
of water bottles

#1. Comparing the data on how much water
bottles are used in different parts of the world
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North America (e.g. United States) – 8,454.0 millions of gallons. (rank 1)
(e.g. Mexico) – 6,887.1 millions of gallons. (rank 2)
South America (e.g. Brazil) – 4,252.5 millions of gallons. (rank 4)
Europe (e.g. Italy) - 2,947.2 millions of gallons. (rank 5)
(e.g. Spain) - 1,272.4 millions of gallons. (rank 10)
Middle East (e.g. Saudi Arabia) – 28 gallons per capita: 28 * 27M ~ 756
millions of gallons.
North Africa (e.g. Egypt) – 3.8 liters per capita (1 gallon per capita): 1 *
80M ~ 80 millions of gallons.
Sub-Saharan Africa (60% have access to somewhat qualifying water)
East Asia (e.g. China) - 5,688.6 millions of gallons. (rank 3)
South East Asia (e.g. Indonesia) - 2,938.6 millions of gallons. (rank 6)
* 0.15 pounds of CO2 emission per 12 ounces (0.094 gallons) of
water bottle (1.596pounds per gallon)
# 2. Hypothetically, relate those data with the data
on GDP per Capita or Population Growth Rate or
Energy (oil production) (any correlation?)
GDP per Capita (Based on year 2009)
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North America (e.g. United States) – 8,454.0 millions of gallons. (rank 1) GDP per
Capita: 40,577.
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(e.g. Mexico) – 6,887.1 millions of gallons. (rank 2) GDP per Capita: 10,980.
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South America (e.g. Brazil) – 4,252.5 millions of gallons. (rank 4) GDP per Capita: 9,565.
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Europe (e.g. Italy) - 2,947.2 millions of gallons. (rank 5) GDP per Capita: 26,228.
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(e.g. Spain) - 1,272.4 millions of gallons. (rank 10) GDP per Capita: 26,950.
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Middle East (e.g. Saudi Arabia) – 28 gallons per capita: 28 * 27M ~ 756 millions of
gallons. GDP per Capita: 22,943.
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North Africa (e.g. Egypt) – 3.8 liters per capita (1 gallon per capita): 1 * 80M ~ 80
millions of gallons. GDP per Capita: 5,898.
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Sub-Saharan Africa (60% have access to somewhat qualifying water) GDP per Capita
(e.g. Nigeria): 2,186.
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East Asia (e.g. China) - 5,688.6 millions of gallons. (rank 3) GDP per Capita: 7,409.
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South East Asia (e.g. Indonesia) - 2,938.6 millions of gallons. (rank 6) GDP per Capita:
3,803.
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* No correlation of CO2 emission of water bottles with GDP per Capita.
Population Growth Rate (Based on year 2009)
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North America (e.g. United States) – 0.88%.
(e.g. Mexico) – 1.30%.
South America (e.g. Brazil) – 0.89%.
Europe (e.g. Italy) – 0.60%.
(e.g. Spain) – 0.77%.
Middle East (e.g. Saudi Arabia) – 2.40%.
North Africa (e.g. Egypt) – 1.80%.
Sub-Saharan Africa (e.g. Nigeria) – 2.50%.
East Asia (e.g. China) – 0.51%.
South East Asia (e.g. Indonesia) – 1.00%.
* As more GDP per capita does not mean more population
growth rate, no correlation with population growth rate.
Oil Production (Tones Based on year 2009)
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North America (e.g. United States) – 328,622,275.
(e.g. Mexico) – 147,440,072.
South America (e.g. Brazil) – 106,040,480.
Europe (e.g. Italy) – 4,572,270.
Middle East (e.g. Saudi Arabia) – 462,737,293.
North Africa (e.g. Egypt) – 35,260,000.
Sub-Saharan Africa (e.g. Nigeria) – 101,535,900.
East Asia (e.g. China) – 189,490,000.
South East Asia (e.g. Indonesia) – 47,941,705.
* Total crude oil production shows no clear
correlation with CO2 emission of water bottles.
#3. Other approaches in regard to the correlation
with CO 2 emission water bottles generate
Analysis (Calculating Cost of Capital)
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CO2 cost of equity = CO2 risk-free Rate (3%) + Beta (1) * CO2
Risk Premium (3%) = 6%.
After-tax CO2 cost of debt = Pre-tax CO2 cost of debt * (1 – CO2
tax rate) = 58% (new 2020 forecast of CO2 cost of debt but
biannual so divide by 2 = 29%)^2(number of times a year) * (1
- 15% (tax rate addressed from Rio+20)) = 0.0715, or 7.15%.
Market value estimate of debt ratio: D/(D+E) = 0.37/1.37 =
0.27. (CO2 Solutions Inc.)
Market value estimate of equity ratio: E/(D+E) = 0.63/1.37 =
0.46. (CO2 Solutions Inc.)
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Cost of Capital = Cost of Equity (E/(D+E)) + After-tax Cost of
Debt (D/(D+E))
= 6%(0.46) + 7.15%(0.27) = 0.047, or 4.7%. (CO2 cost of
capital)
Cost of Capital for beverage firms in overall = 6.34%
(Beverage cost of capital) (from NYU-Stern)
Cost of Capital for water utility industries in overall = 3.46%
(Water utility cost of capital) (from NYU-Stern)
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Cost of Capital for both beverage and water utility industries
in overall = (6.34% * 3.46%) = 0.22% (Beverage & Water
utility cost of capital)
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Comparison between CO2 cost of capital and Beverage &
Water utility cost of capital:
4.7% / 0.22% = 21.36 times more cost for running CO2.
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4. Few ways to reduce rampant CO 2 emission of
water bottles
I. Using Reusable Water Bottle and Drink from Tap Water
 If you are someone who drinks more than 2 liters of water per day (me),
then use reusable water bottle and drink from tap water. (You are saving
more than 350 gallons of water annually) Note: one plastic water bottle = 3
times the same amount of water contained in the water bottle + 1/4 times of
oil.
II. Drink from Tap Water
 If you are someone who drinks less than 2 liters of water per day and do not
want to fill the water bottles, then just drink from tap water when you have
access.
 Benefits: Environment Health; More minerals (more conservation of water
itself)
III. We should be aware of our next generations
 Global warming needs to be slowed down. I personally do not believe that
we can go back to 1990s. Time to be satisfied with our current level of
technology and initiate protection or growth of green nature.