Paying for plastic bags has dramatically reduced usage in the UK

Since the UK government introduced a 5p charge for single-use plastic bags in 2015, millions of shoppers are now choosing not to use them.

In data compiled by the UK government, it was found that there has been an astounding 95% reduction in plastic bag use across England’s major supermarkets.

Given the devastating impact which plastic bags have on the environment, particularly in the world’s oceans, a 95% drop in usage demonstrates the incredible success of the government’s intervention on dealing with the externalities.

But they’re not done yet… Following the success, and the seriousness of the environmental problem which plastic bags contribute to, the government has announced a further increase in the levy from 5p to 10p effective from April 2021.

In addition to the steps being taken by the government, many large supermarkets are beginning to phase out plastic bags entirely by introducing paper bags instead.

Whilst this is all good news for protecting the environment, one has to wonder what the impact of Covid-19 is going to be. Since early this year, millions of single-use face masks have been used, all of which cannot be recycled and will undoubtedly find their way into the world’s oceans and other protected natural habitats.

THINK LIKE AN ECONOMIST!

Q1. What is meant by the term externality?

Q2. Analyse the externalities of using single-use plastic bags?

Q3. Given the information in the article, discuss the likely price elasticity of demand (PED) for plastic bags in the UK.

Q4. Evaluate the view that using paper bags would be better for the environment than plastic bags.

Q5. Discuss one other environmental issue and the possible ways in which the government could intervene to deal with this problem.

Click here for the source article

TheCuriousEconomist

Recent Posts

Nigeria’s economy on a rapid rise but so are prices

Nigeria's economy grew 4.6% year-on-year in Q4 2024, marking its fastest expansion in a decade.…

1 week ago

Trade Win or Tariff Trap? Trump’s UK Deal Raises Questions on Costs and Growth

President Trump has called his new trade pact with the UK a “maxed out deal.”…

1 week ago

Sugar Tax Shake-Up: UK Plans to Target Milkshakes and Dairy Drinks

The UK government has launched a consultation to extend the soft drinks industry levy (SDIL)—commonly…

3 weeks ago

China’s Economy Grows 5.4% — But Can It Withstand Trump’s Tariff Tsunami?

China’s economy started 2025 with stronger-than-expected momentum, growing by 5.4% in Q1—comfortably above forecasts of…

4 weeks ago

U.K. Government Seizes Control of British Steel Plant

It’s a dramatic move—but one the U.K. government believes is essential for national economic security.…

1 month ago

U.S. Tariffs on China Surge Past 100% as Trump Escalates Trade War – but why?

A new chapter in the U.S.-China trade war is unfolding—and it’s one that economists fear…

1 month ago