Monday, February 18, 2008

Chandigarh Should Look to Ireland

In an earlier post here, I extolled the fact that Ireland has made great efforts at achieving near plastic free status entirely through the careful application of elemental principles of Pigouvian taxes. Now, the Indian state of Chandigarh has decided to pursue similar objectives through an entirely different route. Chandigarh has chosen to brandish the bureaucrat's most potent weapon: an outright ban. I am surpised that the idea appears popular as reported here.

While it is understandable that state officials may share the public's concern about the adverse effects of indiscriminate use of plastic bags, it appears that some economist did not remind them that the problem is not plastic per se but the failure of manufacturers and users to pay the cost of proper disposal. In other words, plastic bags are not adequately priced. Following the path of least resistance involves a rehashing of the dangers and great harms caused by the use of plastic retail bags and therefore to easily resort to a law and order approach of indiscriminate bans. I wish them luck but are certain that this ban will not efficiently accomplish that goal or at all.

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