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

Coffee Prices Hit Record Highs as Supply Struggles to Meet Global Demand

Coffee drinkers, brace yourselves: the price of your daily cup is set to rise as…

1 week ago

France Targets the Wealthy with New Tax Hikes to Tackle Deficit

In a bid to save €60 billion in 2025, the French government has unveiled a…

1 month ago

China’s Exports Surge as Global Demand Remains Strong, But Trade Tensions Loom

China’s exports surged by 12.7% in October, marking the fastest growth in over two years…

1 month ago

VW Boosts Rivian Joint Venture with an extra $5.8 Billion

Volkswagen Group is betting big on its electric future with Rivian. The automaker has raised…

1 month ago

American Brands are Feeling the Squeeze as Sales Drop in China

U.S. consumer giants are finding China a challenging market as slowing consumer spending and strong…

2 months ago

Russia Slaps Google with an Unpayable Fine for Blocking State Media

In one of the largest fines ever imposed on a company, a Russian court has…

2 months ago