Charging for Grocery Bags (again)
Several months ago, I argued the price elasticity of demand is so high that a 17-cents per bag charge for plastic grocery bags would dramatically reduce the quantity demanded. Here [h/t to BrianF] is some Australian evidence on the effect of charging for plastic grocery bags.
Overall, in Australia, use of plastic grocery bags has declined by about 20%, and in grocery stores the use has declined by about 25%. Unfortunately the article does not provide more details about how many other retailers have implemented fees-for-bags programmes. The article does, however, reference this study, which says,
Hardware chain Bunnings has sold a million of its red and green reusable bags, chief operating officer Peter Davis said.
Since September 2003, when Bunnings imposed a novel 10c levy on plastic bags, customers had used 21 million fewer plastic bags.
Overall, in Australia, use of plastic grocery bags has declined by about 20%, and in grocery stores the use has declined by about 25%. Unfortunately the article does not provide more details about how many other retailers have implemented fees-for-bags programmes. The article does, however, reference this study, which says,
Scenario 1B (a 25 cent legislated levy) achieves the most significant reductions in environmental impact when compared to Scenario 4Unfortunately, the method for calculating these results is far from transparent in the study. My priors would be to attach a wide confidence interval to them. Why didn't they just estimate the price elasticity of demand?
(the current Code of Practice), ie.:
- 63% reduction in primary energy use
- 65% reduction in global warming impacts
- 82% reduction in contribution to litter (using persistence as the
measure).Scenario 1A (a 15 cent levy) also achieves significant benefits, ie.:
- 54% reduction in primary energy use
- 56% reduction in global warming impacts
- 71% reduction in contribution to litter (using persistence as the
measure).
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