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The Economics Of Plastic Bag Legislation In South Africa1

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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.

Suggested Citation

  • Reviva Hasson & Anthony Leiman & Martine Visser, 2007. "The Economics Of Plastic Bag Legislation In South Africa1," South African Journal of Economics, Economic Society of South Africa, vol. 75(1), pages 66-83, March.
    • Handle: RePEc:bla:sajeco:v:75:y:2007:i:1:p:66-83
    DOI: 10.1111/j.1813-6982.2007.00101.x
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    File URL: https://doi.org/10.1111/j.1813-6982.2007.00101.x
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    1. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249.
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    Cited by:

    1. Doris Knoblauch & Linda Mederake & Ulf Stein, 2018. "Developing Countries in the Lead—What Drives the Diffusion of Plastic Bag Policies?," Sustainability, MDPI, Open Access Journal, vol. 10(6), pages 1-24, June.
    2. Jingze Jiang, 2016. "Peer Pressure in Voluntary Environmental Programs: a Case of the Bag Rewards Program," Journal of Industry, Competition and Trade, Springer, vol. 16(2), pages 155-190, June.
    3. Irina Zen & Rahmalan Ahamad & Wahid Omar, 2013. "No plastic bag campaign day in Malaysia and the policy implication," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 15(5), pages 1259-1269, October.
    4. Johane Dikgang & Martine Visser, 2012. "Behavioural Response To Plastic Bag Legislation In Botswana," South African Journal of Economics, Economic Society of South Africa, vol. 80(1), pages 123-133, March.
    5. Tatiana A. Homonoff, 2018. "Can Small Incentives Have Large Effects? The Impact of Taxes versus Bonuses on Disposable Bag Use," American Economic Journal: Economic Policy, American Economic Association, vol. 10(4), pages 177-210, November.

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