California is using both regulation eliminate reusable plastic bags and a tax to reduce paper and reusable non-plastic bags. Is this combination an efficient way to improve the environment?
by: Allysia Finley
Jan 28, 2017
Click here to view the full article on WSJ.com
Jan 28, 2017
Click here to view the full article on WSJ.com
TOPICS: Environmental Regulation
SUMMARY: Supermarkets can no longer give out shopping bags, though the claimed benefits are dubious.
CLASSROOM APPLICATION: Students can evaluate whether California's ban on reusable plastic bags and 10 cent per bag regulated price on paper bags and reusable bags passes a cost-benefit test. Instructors can introduce the concept of the Pigouvian tax and ask whether the marginal social cost of the paper and reusable bags equals 10 cents. Students can also critically evaluate the evidence about whether the regulated fee is inefficient presented in the opinion piece and ask whether evidence is missing from the argument.
QUESTIONS:
1. (Introductory) Does the opinion piece offer convincing evidence that reusable grocery bags and paper bags are worse for the environment than plastic bags? Are all dimensions of environmental harm caused by plastic bags considered in the opinion piece?
2. (Advanced) "Turns out plastic bags make up a tiny share of litter, less than 1% in most cities, according to a 2013 survey by Environmental Resources Planning. A 2009 litter survey by Keep America Beautiful found that plastic bags make up less than 1% of objects caught in storm drainers." Does this evidence suggest that, considering only litter, plastic bags should not be banned? Does it imply that disposable containers other than plastic bags should be higher than plastic bags on the list of items to be taxed or banned?
3. (Advanced) The requirement that stores charge at least 10 cents for alternative bags was meant to keep retailers from undercutting each other by giving them out free. Does this statement imply that grocery stores are playing a game like a prisoner's dilemma when deciding whether to offer paper bags for free? Does it imply that grocery stores are better off with the 10 cents per bag price?
4. (Advanced) What is a "Pigouvian tax"? Is it efficient for a government to impose a Pigouvian tax on goods that create negative externalities?
1. (Introductory) Does the opinion piece offer convincing evidence that reusable grocery bags and paper bags are worse for the environment than plastic bags? Are all dimensions of environmental harm caused by plastic bags considered in the opinion piece?
2. (Advanced) "Turns out plastic bags make up a tiny share of litter, less than 1% in most cities, according to a 2013 survey by Environmental Resources Planning. A 2009 litter survey by Keep America Beautiful found that plastic bags make up less than 1% of objects caught in storm drainers." Does this evidence suggest that, considering only litter, plastic bags should not be banned? Does it imply that disposable containers other than plastic bags should be higher than plastic bags on the list of items to be taxed or banned?
3. (Advanced) The requirement that stores charge at least 10 cents for alternative bags was meant to keep retailers from undercutting each other by giving them out free. Does this statement imply that grocery stores are playing a game like a prisoner's dilemma when deciding whether to offer paper bags for free? Does it imply that grocery stores are better off with the 10 cents per bag price?
4. (Advanced) What is a "Pigouvian tax"? Is it efficient for a government to impose a Pigouvian tax on goods that create negative externalities?
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