Manufacturing
of paper, plastic and cloth carrier bags. A factor in the analysis is different environmental criteria applied, criteria such as primary energy consumption, resource depletion,
acidification, nutrient enrichment, eco-
toxicity, air and water emissions. Those in favour of paper bags argue that while increased demand for paper bags could lead to more deforestation, paper grocery bags used in many countries today are increasingly made from recycled content.
The environmental levy is one way to make consumers more sensitive to the implications of excessive plastic bag consumption. The question is whether charges for the polluting product should be applied as producer taxes, as behavior-related charges (e.g. returning for recycling deposits) or as simple consumer charges. Experience shows that if, as was the case in Ireland, the levy on plastic bags was set high enough, success was more certain. If however, the levy was set too low, as happened in South Africa, it is not effective in the long term in promoting recycling. To be effective, changes in the price should be large, obvious increases and not small increments. This is the lesson Botswana learned in subsequently following the Irish example, having greater impact with an approach that ensured constant high prices of plastic bags, so that the initial significant decline in consumption continued.
Analyses of the results in South Africa suggest that plastic bag demand is
relatively price inelastic,
implying that instruments based on price alone would have limited efficacy. While the combination of standards and pricing successfully curbed plastic bag use in the short run, the effectiveness of the legislation may be declining over time. This does not imply that price regulation is necessarily less effective
that address the way a certain product is used, when it is used, where it is used, etc. In these cases, regulatory and information instruments are often better suited than for example introducing taxes or credit trading systems. Information instruments can take a variety of including product information, labeling and reporting.
forms,
Public institutions can support the validation and harmonization of eco-labeling schemes, and establish consumer awareness and education programmes to ensure consumers are able to make informed decisions and recognise newly introduced labeling and product information schemes. A recent study for the Ethical Trade Fact-finding Process (ETFP) Group including Consumers International, ISEAL and others, found that the
than voluntary action by industry. Rather, the low recovery rate for plastic bags relative to the other packaging sectors can be explained by the differing characteristics of the plastic bags that make them less amenable to recycling. Factors such as their lower value per unit and relative lack of post-recycling applications, implies that they have a low recycling value relative to other waste streams. Regulation therefore has a special role in cases where the material in question has little inherent recycling value, leaving little incentive for industry to take the initiative. Where regulatory initiative is taken, the level of pricing and combination with other factors such as infrastructure and awareness-raising will be decisive.
South African government officials consider the regulation a success and have started implementing similar initiatives to regulate other waste products such as used tyres, oil and glass, confirming a trend towards waste product regulation. The example inspired other countries such as neighbouring Botswana. It also sparked debate about government use of the revenue, and how it could be used to boost the local waste management industry. In addition, it displayed the challenge government faces in introducing a common tax that impacts households of very different income levels. By 2009, in his budget review, the Minister of Finance announced an increase in the levy on plastic bags and the introduction of a levy on incandescent light bulbs targeting local manufacturing and imports. The plastic-bag levy was expected to generate US$ 2.2 million while the incandescent light bulb levy was expected to generate US$ 3 million.
Sources: Dikgang and Visser (2010); Fund for Research into Industrial Development, Growth and Equity (2001); Hasson, Leiman and Visser (2007); Nahman (2010); Nhamo (2005); and Yingling Liu (2008)
regulation of (environmental) marketing claims is, and self-regulation seems to be becoming, more common (Symbeyond Research Group, 2010). 13
In recent years,
national eco-labelling schemes have been initiated in Brazil, China, India, South Africa, Indonesia, Thailand and Tunisia.14
In addition to introducing such schemes
13. The Eco-label Index database keeps track of 373 eco-labels operating in 25 industry sectors and countries world-wide. Available at www.
ecolabelindex.com/
14. By 2000, 43 countries – mostly in Europe and Asia – had household appliance efficiency programmes in place, seven times as many as in 1980. Standards “push” the market by requiring manufacturers to meet minimum standards. They are well complemented by eco-labeling programmes, which “pull” the market by providing consumers with information to help them make responsible purchasing decisions, and hence encourage manufacturers to design and market more eco-friendly products (Worldwatch Institute 2004).
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