Development economists have named Ireland the Celtic Tiger in reference to the great achievements in economic growth and improvement of the material conditions of citizens that that the country accomplished over three decades. Indeed, an earlier post highlighted the country's sensible and admirable approach to policy questions. Responding to another public policy question, this report in the NYT shows that creative societies do not stop applying the most basic principles of economics to those questions.
Irrespective of the views that may be adopted by the majority, it is evident that plastic bags are cheap and convenient for carrying groceries but are an aesthetic and environmental nuisance. As a purist would suggests, a tax on plastic bags ought to be imposed to ensure a reduction in their use and the possible rise of an alternative. Through the imposition of a tax on plastic shopping bags, Ireland saw a 94% reduction in their use and this has persisted. Outright bans would hardly have been half as effective.
In addition to the willingness to apply the basics of economic theory, the success of the initiative must be attributed to the fact that the bags were imported hence strong protectionist pressure from a domestic manufacturer was absent. One can only hope that when the facts are clear and the policy objective is understood, then the application of the principles could be this easy. And as successful!
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I agree that economics will drive consumers to reduce their usage of plastics. Ireland has the right idea of imposing a Levy on the plastic bags. The money that is collected goes into an Environmental Fund that funds environmental education and waste reduction strategies. Paying into the levy is then a choice people can make; they can either pay the levy and receive plastic bags, or they can choose to NOT pay the levy and bring their own bags. Either way, plastic bag consumption drops.
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