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The Economics Of Plastic Bag Legislation In South Africa

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  • Reviva Hasson
  • Anthony Leiman
  • Martine Visser

Abstract

In May 2003 South Africa introduced legislation intended to decrease plastic bag litter. It combined standards and price-based economic tools in an attempt to reduce the public's demand for plastic bags. This paper analyses the short term effects of the legislation on bag demand. It also provides a background to these regulations and a theoretical overview. The assessment uses bag consumption data from four retailers, each representing a different consumer market. These are analysed, and respective price elasticities calculated. The results suggest that plastic bag demand is relatively price inelastic and imply that instruments utilising price alone, would have limited efficacy. However, the combination of standards and pricing successfully curbed plastic bag use in the short run. Further analysis suggests that the effectiveness of the legislation may be declining over time. Copyright (c) 2007 The Authors. Journal compilation (c) 2007 Economic Society of South Africa.

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Bibliographic Info

Article provided by Economic Society of South Africa in its journal South African Journal of Economics.

Volume (Year): 75 (2007)
Issue (Month): 1 (03)
Pages: 66-83

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Handle: RePEc:bla:sajeco:v:75:y:2007:i:1:p:66-83

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Cited by:
  1. Dikgang, Johane & Visser, Martine, 2010. "Behavioral Response to Plastic Bag Legislation in Botswana," Discussion Papers dp-10-13-efd, Resources For the Future.
  2. Irina Zen & Rahmalan Ahamad & Wahid Omar, 2013. "No plastic bag campaign day in Malaysia and the policy implication," Environment, Development and Sustainability, Springer, vol. 15(5), pages 1259-1269, October.

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