Plastic bags are an established part of shopping, and although convenient, cause substantial environmental damage worldwide. Australia’s consumption is estimated at well over 5 billion bags per year, and of these, only three percent are recycled. (Boomerang Alliance, 2015) This results in the majority of bags ending up in landfill or the environment, imposing significant impacts on wildlife (Animals Australia, 2012). This critical analysis will therefore summarise the issues surrounding plastic bags, the economic model for a tax on plastic bags and whether the tax would be effective in correcting the market failure in Australia.
The useful life of a single-use plastic bag is relatively short, however, it imposes a significant social cost
…show more content…
Externalities lead to market failures and effect people that are not directly involved in the production or consumption of goods. The consumption of plastic bags is regarded as a negative externality, as the private benefits provided are outweighed by the social costs imposed such as environmental damage, as well as litter and landfill costs (Environment Protection Authority, 2016). These negative impacts are not captured in the price of the good and therefore lead to over consumption and an inefficient equilibrium. Economist Arthur Cecil Pigou, argued that to deal with a negative externality the government should impose a tax equal to the cost of the externality ("Arthur Cecil Pigou", 2008). Figure 2.0, illustrates such effect of a tax implemented, in relation to the consumption of plastic …show more content…
A ban would entail the removal of all plastic carry bags and prohibit retailers from distributing them (Environment Protection Authority, 2016). Since South Australia’s plastic bag ban was introduced in 2009, over 400 million bags have been removed from the economy each year, and there has been a 45 percent reduction of HDPE bags in litter streams (Wildlife Queensland, 2015). A ban would also pose benefits on grocery prices, as the current cost of 2-3 cents per plastic bag, would no longer be distributed by retailers amongst goods (Environment Victoria, 2010). However, it is economically argued that eliminating plastic bags is inefficient as the total cost of doing so would be greater than the total benefits (Clapp & Swanston, 2009, p.321)
A tax is an effective policy that can be imposed to reduce the consumption of plastic bags in Australia. While a tax will not eliminate plastic bags completely, it corrects market failure and establishes an efficient market equilibrium. An alternative policy such as a plastic bag ban, if employed would significantly reduce the amount of bags in circulation, however is economically perceived as inefficient as the costs outweigh the benefits. However, either of the policies posed would reduce the impact on the environmental impact and the social costs borne by
...f items. Businesses do not have to worry about problems such as the degradation of the environment and ill effects on health so they do not include them in the cost of their products. Gleeson-White asserts that accountants need to find a way to account for these externalities soon to make businesses care about the impact that they are having on the world.
The government wants to put a price on plastic bags 5-10 cents.While some agree with this movement other don’t. & the people who don’t wanna agree with it wanna get rid of plastic bags for good as a plastic bag ban. They have many reasons for why they don’t want plastic bags anymore but so do the people who want plastic bags & to add a fee for having them. We’re just giving our pure opinion of what we think about the movement, we are supporting why our opinions & telling how either the movements will affect us as a community negatively or positively.We both disagree therefore we will have to support what we say & why we say it with evidence from a source that will help us explain and persuade the government that this movement is either a good
According to Laura Parker, a Senior Staff Writer for National Geographic, 40% of plastic is manufactured for single use, and 91% of all plastic manufactured never gets recycled.3 One of the most detrimental types of single-use plastics are microbeads, tiny plastic bits used in various cosmetic products that get washed into sewer systems and ultimately end up in our oceans. Other plastic products also become as small as some microbeads over time through the process of degradation, which turns otherwise-large plastic products into dangerous microplastics. The problem of microplastics was first realized in 2004, and the first assessment of its prominence was carried out as recently as 2015.3 As for the dilemma of the Garbage Patch itself, it was brought to the world’s attention by Charles Moore who discovered the patch in
“Paper or plastic?” This is often a question customers are asked at the weekly trip to the supermarket to purchase groceries to keep families fed. Adam B. Summers has created a highly plausible argument that may change customer’s answer next time. In Summers’ “Bag ban bad for freedom and environment” editorial for the San Diego Union-Tribune, he argues against the possible laws hindering Californians from using plastic bags at grocery stores. He believes they would do more harm than good, and that “a little reason and perspective is in order.” By the end of this piece the reader will likely find themselves nodding in agreement with what Summers has to say, and this isn’t just because he’s right. Summers, like any good writer, employs tactical
Here’s an article discussing the recent US BP oil Spill off the Gulf of Mexico as a classic example of a negative externality. After reading it, try recalling the concepts of Marginal Cost, Marginal Social Benefit , Marginal Personal Cost and Marginal Personal Benefit. Then remember the concepts of Allocative, Productive and Distributive efficiency. The exercise should be a fairly good proxy indicator your familiarity with the topic.
The article Plastic bags are Good for you, by Katherine Mangu-Ward was written to explore the pro’s and con’s of three different types of bags. Which is better between plastic, paper, or reusable bags has always been a debatable question with an opinionated answer. In the article Mangu-Ward characterizes the cause and effect relationships which have lead to the unpopularity of plastic bags in terms of guilt.
Every year, an estimated 8 million tons of plastic waste enters our environment, severely polluting oceans, beaches, forests, and even the towns and cities we live in. In the ocean alone, it is believed that 5.25 trillion pieces of plastic pollutes the waters (“Plastic Statistics”, Ocean Crusaders).The majority of plastic pollution can be traced back to single-use items, such as grocery bags, bottles, and plastic packaging. According to United Nations Environment, “At the rate we are dumping items such as plastic bottles, bags and cups after a single use, by 2050 oceans will carry more plastic than fish…” (“UN Declares War on Ocean Plastic”, UN Environment). This pollution is a major problem and endangers not only the environment, but human
Secondly, this backpack is amazing for the environment. Every bag is created with 10 plastic bottles, giving a new life to these products that usually take over 400 years to decompose. In fact, “Between 5m and 13m tonnes of plastic leaks into the world’s oceans each
We will be discussing negative externalities. A classic example of negative externality is pollution. The polluter keeps on having benefit through his business and doesn’t bother to think about the waste material he is producing for getting yield. This waste material affects the public negatively because its side effects have
Externalities, also referred to as spillovers, are costs or benefits neither paid for nor compensated for which affect the welfare of a bystander. When an externality is adverse, it is a negative externality, spillover cost. When an externality is beneficial, it is a positive externality, spillover benefit. The two different types of externalities impact resource allocation. The diesel-emissions from certain Volkswagen vehicles is an example of a negative externality which had an unfavorable impact on the environment as well as innocent bystanders, affected resource allocation, and caused Volkswagen to fix its market failure.
... converting plastic waste into useful products are being affected by pollution; this contamination is found within containers where plastics are collected. But the same risk of pollution carries downside consequences in which workers and people responsible for cleaning and disinfecting the plastic materials are not doing the best to eliminate plastic waste, and to disinfect the infected bacteria and microorganisms from the atmosphere and environment. Organizations from China and India are the largest in the world, they collect and purchase used plastic from United States, Europe, Asia and Latin America (Minguez 2013). These companies do not bother to sanitize the products before the recycling process; for this reason the planet earth is getting a worse environmental condition, and it is destroying lives of living beings, and natural resources as well (Uddin 2014).
...e government can use to reduce the consumption of the plastic bags without causing a burden to the consumers initially is through funding negative advertising. However this creates opportunity cost, which is the cost of an alternative that much be forgone in order to pursue a certain action. This will cause MPB curve to shift to left, towards the MSB curve. However this is a disadvantage towards the government as it cost a lot for funding advertisement. Therefore this would lead to an increase in taxation causing burden to the consumers whether they consume plastic bags or not.
Plastic or paper, is a choice that people face when going to the grocery stores. Plastic bags are often the choice that is made. A controversial issue in the world today is the use of plastic bags. Plastic bags are used because of the convenience they give, by being able to carry several items at once. However, in the article, “Banning Bans, Not Bags”, Jennifer Schultz claims, “Plastic bags clog up local waterways, litter roadways, and get swallowed up by unsuspecting fish” (6). Plastic bags are used once, then are discarded or, littered all over the place. When they are littered all over they become problems for more than just humans. These plastic bags pose a big hazard for animals on land and in especially the ocean. Humans eat land and
This essay will discuss the various harmful effects of plastic bags, and demonstrate the risks that these bags impose on humans, animals, and the environment. It will also discuss a series of suggested solutions that could help reduce plastic bag usage. Although plastic bags appear to be fragile and light, their negative environmental effect is devastating. Plastic bags may cause large amounts of pollution at every step of their limited life cycle, from the extraction of raw materials, production, transportation, and recycling or disposal. Plastic bags can be defined as the most damaging form of environmental pollution.
Everyone has heard a cashier one time or another mumble, “Paper or plastic?” as he put their groceries in a bag, but do shoppers know the effects of each vessel in which they carry their comestibles? There are many issues and benefits to both paper and plastic. The making and recycling of both paper and plastic bags can harm the environment. One must also look at the costs of making each bag. The convenience of each is also something to look at. Many people jump to conclusion that paper bags are better for the environment without knowing the facts. Since plastic bags are preferred by customers and plastic bags actually do not hurt the environment as much as paper ones do, consumers should feel at ease when choosing plastic.