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Addressing Plastic Bags Consumption Crises through Plastic Bag Levy, Retailer Monetary and Non-monetary Interventions in South Africa

This research analyses the impact of a plastic bag levy, and retailer interventions focussing on promotion of reusable bags to reduce plastic bag consumption. For this purpose, tax revenue data for the fiscal years 2008 to 2020 and retail outlet data for March 2018 to February 2020 was used. A descr...

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Main Author: Abiola, Babatunde
Other Authors: Visser, Martine
Format: Thesis
Language:English
Published: School of Economics 2023
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access_status_str Open Access
author Abiola, Babatunde
author2 Visser, Martine
author_browse Abiola, Babatunde
Visser, Martine
author_facet Visser, Martine
Abiola, Babatunde
author_sort Abiola, Babatunde
collection Thesis
description This research analyses the impact of a plastic bag levy, and retailer interventions focussing on promotion of reusable bags to reduce plastic bag consumption. For this purpose, tax revenue data for the fiscal years 2008 to 2020 and retail outlet data for March 2018 to February 2020 was used. A descriptive arc price elasticity was estimated from the tax revenue data, while the retail outlet data was analysed by using a panel fixed effects model to evaluate the impact of three treatments on plastic and reusable bag consumption in South Africa. Findings revealed that Treatments 1 (a monetary intervention based on giving reusable bags away for free) and 2 (a non-monetary intervention framed around a plastic free July campaign) significantly increased reusable bag uptake and reduced plastic bag consumption, while Treatment 3 (a monetary intervention involving a subsidy on reusable bags) increased reusable and plastic bag sales. The findings contribute to the literature on the effectiveness of non-monetary nudges (T2). The latter is more efficient than the monetary incentives (T1 and T3). The results also agree with the literature on the ineffectiveness of subsidies (T3) for the purpose of discouraging the consumption of plastic bags. The results confirmed that plastic bag consumption is habitual in South Africa. Based on these findings, policy recommendations were made that public campaigns and other behavioural nudges should be considered more effective in addressing the consumption of plastic bags than subsidies on reusable bags. In addition, because of the revealed low level of reuse of both plastic and reusable bags, the use of reminders to reuse bags should be considered and researched in order to modify consumer behaviour in South Africa.
format Thesis
id oai:open.uct.ac.za:11427/36974
institution University of Cape Town (South Africa)
language eng
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2023
publishDateRange 2023
publishDateSort 2023
publisher School of Economics
publisherStr School of Economics
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source_str UCTD — University of Cape Town Open Access Repository
spelling oai:open.uct.ac.za:11427/36974 Addressing Plastic Bags Consumption Crises through Plastic Bag Levy, Retailer Monetary and Non-monetary Interventions in South Africa Abiola, Babatunde Visser, Martine Economics This research analyses the impact of a plastic bag levy, and retailer interventions focussing on promotion of reusable bags to reduce plastic bag consumption. For this purpose, tax revenue data for the fiscal years 2008 to 2020 and retail outlet data for March 2018 to February 2020 was used. A descriptive arc price elasticity was estimated from the tax revenue data, while the retail outlet data was analysed by using a panel fixed effects model to evaluate the impact of three treatments on plastic and reusable bag consumption in South Africa. Findings revealed that Treatments 1 (a monetary intervention based on giving reusable bags away for free) and 2 (a non-monetary intervention framed around a plastic free July campaign) significantly increased reusable bag uptake and reduced plastic bag consumption, while Treatment 3 (a monetary intervention involving a subsidy on reusable bags) increased reusable and plastic bag sales. The findings contribute to the literature on the effectiveness of non-monetary nudges (T2). The latter is more efficient than the monetary incentives (T1 and T3). The results also agree with the literature on the ineffectiveness of subsidies (T3) for the purpose of discouraging the consumption of plastic bags. The results confirmed that plastic bag consumption is habitual in South Africa. Based on these findings, policy recommendations were made that public campaigns and other behavioural nudges should be considered more effective in addressing the consumption of plastic bags than subsidies on reusable bags. In addition, because of the revealed low level of reuse of both plastic and reusable bags, the use of reminders to reuse bags should be considered and researched in order to modify consumer behaviour in South Africa. 2023-02-22T11:52:59Z 2023-02-22T11:52:59Z 2022 2023-02-20T12:08:54Z Master Thesis Masters MCom http://hdl.handle.net/11427/36974 eng application/pdf School of Economics Faculty of Commerce
spellingShingle Economics
Abiola, Babatunde
Addressing Plastic Bags Consumption Crises through Plastic Bag Levy, Retailer Monetary and Non-monetary Interventions in South Africa
thesis_degree_str Master's
title Addressing Plastic Bags Consumption Crises through Plastic Bag Levy, Retailer Monetary and Non-monetary Interventions in South Africa
title_full Addressing Plastic Bags Consumption Crises through Plastic Bag Levy, Retailer Monetary and Non-monetary Interventions in South Africa
title_fullStr Addressing Plastic Bags Consumption Crises through Plastic Bag Levy, Retailer Monetary and Non-monetary Interventions in South Africa
title_full_unstemmed Addressing Plastic Bags Consumption Crises through Plastic Bag Levy, Retailer Monetary and Non-monetary Interventions in South Africa
title_short Addressing Plastic Bags Consumption Crises through Plastic Bag Levy, Retailer Monetary and Non-monetary Interventions in South Africa
title_sort addressing plastic bags consumption crises through plastic bag levy retailer monetary and non monetary interventions in south africa
topic Economics
url http://hdl.handle.net/11427/36974
work_keys_str_mv AT abiolababatunde addressingplasticbagsconsumptioncrisesthroughplasticbaglevyretailermonetaryandnonmonetaryinterventionsinsouthafrica