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The Effects of an Environmental Policy on Consumers: Lessons from the Chinese Plastic Bag Regulation

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  • He, Haoran

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

To reduce plastic bag litter, China introduced a nationwide regulation requiring all retailers to charge for plastic shopping bags on June 1, 2008. By using the policy implementation as a natural experiment and collecting individual-level data before and after the implementation, we investigate the impacts of the regulation on consumers’ bag use. We find that the regulation implementation caused a 49% reduction in the use of new bags. Besides regulation enforcement, consumers’ attitude toward the regulation and some consumers’ socioeconomic characteristics also affected bag consumption. However, the regulation effects differ largely among consumer groups and among regions and shopping occasions.

Suggested Citation

  • He, Haoran, 2010. "The Effects of an Environmental Policy on Consumers: Lessons from the Chinese Plastic Bag Regulation," Working Papers in Economics 453, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0453
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    File URL: http://hdl.handle.net/2077/22459
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    References listed on IDEAS

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    1. Cameron, A Colin & Trivedi, Pravin K, 1986. "Econometric Models Based on Count Data: Comparisons and Applications of Some Estimators and Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 29-53, January.
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    3. Stavins, Robert N., 2003. "Experience with market-based environmental policy instruments," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 9, pages 355-435, Elsevier.
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    Cited by:

    1. Thornton Matheson, 2022. "Disposal is not free: fiscal instruments to internalize the environmental costs of solid waste," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 29(4), pages 1047-1073, August.
    2. 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.
    3. He, Haoran, 2010. "Can Stated Preference Methods Accurately Predict Responses to Environmental Policies? The Case of a Plastic Bag Regulation in China," Working Papers in Economics 444, University of Gothenburg, Department of Economics.
    4. Johane Dikgang & Anthony Leiman & Martine Visser, 2012. "Elasticity of demand, price and time: lessons from South Africa's plastic-bag levy," Applied Economics, Taylor & Francis Journals, vol. 44(26), pages 3339-3342, September.
    5. Rajendra Kumar Foolmaun & Dinkar Sharma Chamilall & Girish Munhurrun & Anand Sookun, 2021. "Was Mauritius really successful in banning plastic carry bags, after promulgation of the regulation prohibiting plastic bags usage?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(8), pages 11660-11676, August.
    6. Bishal Bharadwaj, 2016. "Plastic Bag Ban in Nepal: Enforcement and Effectiveness," Working Papers id:11548, eSocialSciences.
    7. Tatiana A. Homonoff, 2013. "Can Small Incentives Have Large Effects? The Impact of Taxes versus Bonuses on Disposable Bag Use," Working Papers 1483, Princeton University, Department of Economics, Industrial Relations Section..

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    More about this item

    Keywords

    China; litter; market-based policy; natural experiment; plastic bag;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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