1)Tax On plastic bags:
A corrective tax provides incentives to reduce the negative externality such as pollution. In Ireland, for example, usage of plastic bags fell by 90% aft(prenominal) the Plas Tax came into force. In 2002, Ireland passed a tax on plastic bags; customers had to pay 33 cents per bag at the register (Elisabeth 2008)
Advantages of Taxes
1. It go forth result in neighborly efficiency, where MSC = MB ( charter). A tax will make people pay for the social cost ca riding habitd by negative externality. The tax will increase the price of plastic bags and so the quantity demanded to what society wants. When soulfulness chains start charging customers for bags, demand for plastic bags falls (The economic expert Magazine, 2009).
2. Taxes raise revenue for the govt. This can be spent on alternatives to reduce pollution.
3.People can shift from plastic bags to another(prenominal) environmental friendly products such as paper bags or cloth bags.
According to New York Times, reusable cloth shop bags, have replaced plastic shopping bags, which are subject to a 33-cent tax per bag (Elisabeth 2008).
Disadvantage of taxes:
1)Difficult to measure the level of negative externality and so what level of tax ineluctably to be set e.g. what is the cost of pollution from a wizard plastic bag?
2)If Demand is inelastic then a high tax will not reduce demand much. For example, many people will still be involuntary to pay a few cents to carry their groceries in plastic bags.
3) The Cost of administration of collecting the taxes.
2) Advertising Awareness Campaigns against the use of plastic bags:
Advertising campaigns can be effective in a number of ways. They can be used as a...If you want to get a full essay, order it on our website: Orderessay
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