Saturday, May 19, 2012

Essay I Wrote on What a Bag Tax Is, What Goes into Making and Applying One and How They Are Beneficial


This is an essay that I had to write for my Environmental Politics class.  We had the opportunity to choose any topic as long as it applied to an approach used to make policy (in my case I chose market-based mechanisms).  My topic was the Bag Tax, something that has become prevalent in many US cities.  In the DC Metro area, this type of tax is becoming quite popular.  My paper addresses this tax and uses many examples from the DC area.  With that being said, it does not mean that this information can not be applied elsewhere; in fact, many of the trends seen in DC and its surrounding areas can be seen in almost any location, within the US and abroad, that implements a bag tax.  I hope you enjoy and PLEASE leave comments.  ALSO NOTE: THIS PAPER CAN NOT BE USED BY ANYONE ELSE. IT IS MEANT FOR READING PURPOSES ONLY

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            There is currently a movement sweeping the nation; it started out in San Francisco as an effort to reduce pollution, but now it has turned into much, much more.  The bag tax is one of the most wanted and, at the same time, argued pieces of legislation popping up in cities across the United States.  In the beginning, it was an environmentalist push for a greener city, but it is now a socio-enviro-economic tool being used to boost local economies, cut down on plastic pollution and give citizens the notion that they are helping out their community.  This market-based policy tactic is one of the most effective and influential policy-making tools available today. 
            The main purpose and goal of a bag tax is to impose a tax, usually 5-10 cents per bag, to sway people away from the use of plastics and towards reusable, eco-friendly bags.  Each city that has adopted this policy has had their own take on this rule, sometimes making a higher fee (10-20 cents) or also charging a fee for the use of paper bags as well.  Usually, the money raised through the tax is used to fund environmental enforcement and cleanup efforts, as well as other environmentally related efforts within the community. 
            In the Baltimore Sun article, “Bag Tax Legislation for Prince George’s County Moves Forward”, writer Drew Grossman discusses how this movement has made its way into our local community and what the possible outcomes could be.  The bag tax was recently imposed in Montgomery County, MD at the beginning of the 2012 year and has been in effect in Washington D.C. for two years.  Prince George’s officials have used these two examples as blueprints and “crystal balls” to try and predict how this tax would play out if implemented in Prince George’s County, MD. 
            Market-based environmental policies, according to Stavins and Whitehead, are, “regulation that encourages appropriate environmental behavior through price signals rather than through explicit instructions” (Hadden).  Normally, market-based approaches are cost effective and encourage technological improvement, leave choice of how to accomplish goals up to individual or firm and [show the] importance of incentives (Hadden).  By taxing those who continue to use plastic bags, the money acquired will allow for the production of locally made reusable bags and to invest in other technologies for goods to be carried.  Grossman notes in his article in a conversation with Mike Bolinder, the Anacostia Waterkeeper, that, “Because almost half of the Anacostia River's watershed lies in Prince George's County, the new bag fee under consideration will help further reduce the number of disposable plastic bags that pollute the river” (Grossman).
A main idea of this political tactic is that the economic impact will have enough of an effect on people that the end goal (a reduction in plastic bag usage) will present itself without any governmental regulation, meaning putting a ban on all plastic bags.  Even though it is such a small price to pay for a bag, only 5 cents, cities that have implemented this tax have seen drastic reductions in plastic bag usage, and even more importantly, plastic bag pollution.  For example, in Washington D.C., since first adopting this tax in 2010, has seen a 75% decrease in plastic bag usage (of the polled citizens) and has raised $1.8 million from the tax along with over $1.3 million from donations and grants (Grossman).  It is clear, just in this region, that a market-based approach such as the bag tax is effective; it is just a matter of if it is accepted by the community and by local political officials. 
            In lecture given by Dr. Hadden at the University of Maryland, College Park on “Market-Based Mechanisms”, she touched on the idea that many environmentalists and environmental groups favor these “quasi-market” schemes over others such as command and control (Hadden).  Due to the government action involved in market-based schemes, there is rarely any room to get away with not complying with the law.  For example, if a city adopts a bag tax, anyone who purchases a good within the city limits must pay for the bag if they choose to get one.  On the other hand, each business must abide by the law and tax consumers for each bag.  In the case of the Prince George’s County bag fee, the idea of environmental groups supporting schemes like this is proven true.  There are plenty of non-profit environmental organizations that have voiced their opinions and have become active players in trying to get this law passed.  Organizations such as Surfrider DC and Bag Free Maryland are two key organizations that have, from the beginning, been spreading knowledge within the county of how much of a difference this tax would make on the local environment.  Both of these groups also helped get the Montgomery County bag that passed as well as the Washington D.C. bag tax. 
            With the market-based approach to the bag tax comes plenty of criticism.  Fortunately, the areas of criticism that Dr. Hadden had addressed can all be answered with a positive note of the bag tax.  In general the market-based mechanism was critiqued thoroughly in the Goodwin article.  It is mentioned that we want “polluters not to pollute” not for “polluters to pay for polluting” (Hadden).  While this may be true, it is almost impossible to stop all polluting at every level.  Therefore, we must compromise and take something rather than nothing.  At the same time, with this approach, unlike others, money is being made off of the tax which is going directly back into the community to help clean it more.  This idea is 100 percent green in the sense that the government is trying to cut down on plastics, and instead of pocketing the profits they are recycling them.  The issue of fairness is also brought up; Goodwin asks “Is it fair for everyone in the environmental community to have to do the same thing?”  The answer is yes; mostly everyone in this community contributes to pollution and is guilty, somewhere down the road, of throwing plastic or trash on the ground.  Even though they might not be guilty in doing so now, it is simple to switch from plastic bags to reusable bags.  Not only will there be a sense of peace knowing that they aren’t contributing to plastic usage but people will realize that the cost of purchasing a reusable bag is just as much as a purchasing few plastic bags that, not to mention, can only be use one or twice.  Goodwin also mentions that there is usually a problem setting the price in market-based approaches.  In the case of the Prince Georges County bag tax, the 5-cent tax has proven to be the best price to start out with.  As seen in D.C., Montgomery County and elsewhere, 5-cents has drastically reduced plastic bag usage within a short period of time.  After a few years of reduction, lawmakers can decide whether to raise that tax to further push for less plastic usage – something that we have seen in San Francisco and other areas.  Goodwin’s main argument in his piece is that people will still pollute if they have the money or until it is unacceptable by law to use any resource, in this case plastic bags.  While this may be true, that people will still purchase bags, statistics clearly show that the number of plastic bags have gone down by almost 50 percent in some locations within a few years of the tax being put into effect.  When environmental groups inform local citizens of the toll plastic has on the environment and the damage it can cause to human health, there will be more people who will take action to reduce their effect on the environment than there will be those who do not.  While Goodwin does make quality arguments against the market-based approach, in the case of the plastic bag tax in Prince Georges County, this approach will do wonders for the environment and economy.  In a place that is littered with plastic and trash, a market-based solution such a bag tax will help out a less-affluent communities such as College Park, Hyattsville and Beltsville. 
            Even though there are many clear positives to adopting a bag tax in any community, there are still some areas of the tax itself that could be corrected.  Living in College Park, I have spoken to a few vendors who have said that this tax will not pass because “poor people” cannot afford it and will not want to have to deal with the inconvenience of a 5-cent tax on plastic bags.  It is understandable why one would say this, but I think that the issue at hand is the education of the local citizens.  Not whether or not they are smart, but instead being educated about pollution, human health hazards from plastic and environmental hazards from plastic pollution and other pollution.  Yes, there are some groups who advocate for this cause and do their best to educate the public, but there is only so much that they can do.  Every town in America should want to push for such a beneficial tax; each town, whether it is Bethesda or Baltimore, has pollution in its environment, in its water and chances are you will see plastic bags on the sides of their roads.  It should be the responsibility of the policymakers to want to have a clean town and to want to protect their citizens, it shouldn’t be about political identity or labeling it a “leftist” thought, it should be about doing to the right thing and taking an easy of a step as mandating a 5-cent tax on plastic bags towards living in a better community.  Education of the public is the main problem with this market-based solution to plastic bag pollution.  If people were more educated about this subject than I am willing to bet that this tax would be implemented in cities across the United States. 

Works Cited

Hadden, Dr. Jennifer. "Approaches: Market-Based  Mechanisms  ." Class. GVPT273. Lecture, College Park. 15 Apr. 2012. Lecture.
Grossman, Drew. "Bag tax legislation for Prince George's County moves forward." Baltimore
Sun 2 Feb. 2012: n. pag. Baltimore Sun . Web. 12 Apr. 2012.

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