Comments on: Monkey See, Monkey Do: Plastic Bag version

By: PJ

PJ — Thu, 14 Feb 2008 05:25:40 +0000

Ireland probably has enough state capacity to enforce an outright ban on conventional light-bulbs.

The energy-efficiency imperative, in that case, likely supercedes the economic-efficiency imperative.

By: Amit

Amit — Wed, 13 Feb 2008 18:12:25 +0000

In the US, some stores (mostly co-operatives) offer a 5 cent discount for each bag that you bring and have had this policy in place for more than a decade now. Whole Foods recently announced that they would stop offering plastic bags to customers during checkout. Stores are increasingly offering reusable bags for sale to customers.

And the practice in India that I grew up with (70s, 80s) was to bring your own cloth bags when going grocery shopping. Looks like we’re finally coming to a full circle after all the scientific research, economic theories and what not and realizing that environment does matter.

Also, China recently announced that it’d ban plastic bags. I’m sure economists won’t be happy with the “banning” part but if it helps the economy grow, maybe they will. What do you say, Atanu?
http://www.thedailygreen.com/environmental-news/latest/china-plastic-bags-47010907

I personally am fine with such bans if it is proven that they do harm the environment and/or people, and the reason behind such bans is shared with people. An example is banning of gasoline with lead for on-road vehicles in the US. AFAIK, after the deleterious health effects came into view, it wasn’t decided to continue offering the leaded gasoline at a higher price. I can see a similar parallel here. Many of the plastic bags end up in oceans suffocating turtles, marine life and birds.

By: aseembajaj

aseembajaj — Wed, 13 Feb 2008 16:08:52 +0000

Dear Malapati,

> But in India, I am not sure how far it works.
> It has not made any difference when
> cigarettes and other forms of tobacco along
> with alcohols were taxed heavily

Taxing as a form of discouragement works if there are alternatives. Bags are still being used by people in Ireland, except they are not plastic bags any more.

If someone smokes, it’s unclear if further taxation would discourage her. Smoking is not utlitarian. It’s hard for people to change their brand of cigarettes, leave alone quitting. So, I don’t think that the real reason for tobacco tax increase is discouragement.

By: Atanu Dey

Atanu Dey — Wed, 13 Feb 2008 03:52:16 +0000

The 10 paisa tax per plastic bag is just an approximation. For arriving at the real figure, one will have to do some real figuring (heh), and that would also include working out the mechanisms which would prevent people from by-passing the tax.

For starters, the tax has to be sufficiently high that it will make people choose to bring their own re-usable bags. I notice that the typical visit to the kirana store involves at around 4 or 5 little plastic bags — mostly for stuff that the store has in bulk and retails in measured quantities. These are often staples such as sugar, rice, etc. These little bags end up causing the most problem.

By: saileshganesh

saileshganesh — Wed, 13 Feb 2008 03:40:16 +0000

Taxing instead of banning sounds like a great idea. But the tax of 10 paise sounds too low to make a difference. On the other hand, imposing a very high tax might open up a black market for plastic bags. What do you suggest to make sure this doesnt happen?

By: malapati

malapati — Tue, 12 Feb 2008 17:48:46 +0000

Hello

“that banning does not work, whereas taxing an activity that has negative externalities helps.”

The idea of taxing instead of banning sounds sensible. But in India, I am not sure how far it works.

It has not made any difference when cigarettes and other forms of tobacco along with alcohols were taxed heavily compared to the other goods.