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News: A United Nations Environment Programme (UNEP) report stated last year that emissions of plastic waste into the aquatic ecosystems may triple by 2040 in the absence of actions.
What are the causes behind increasing plastic waste?
Increasing global consumption and low participation in recycling programmes.
Consumption externality: It is more challenging to address challenging to address compared to production externality. Because imposing cost of the harm by plastics on all consumers may not yield efficient solutions due to their large number.
Banning plastic bags can result in a sustainable environment, intergenerational equity, saving marine and wildlife ecosystems, and restoring soil quality. However, it also causes inconvenience for consumers, increases substitution costs, and creates unemployment shocks as it affects the production of plastics.
Taxation: It is difficult to bring global consensus on a uniform tax to be imposed. Because, it may depend on country-specific circumstances.
What policy measures can be adopted against plastics?
Removal of existing taxes and subsidies that have a negative environmental impact.
Taking into account the different types or grades of plastics for taxation.
Restructuring existing taxes in an environmentally friendly manner. It can be done in the following ways:
- various stages of production, consumption or disposal of plastics should be taxed. Because pollution starts happening from the production stage.
- Meters can be installed for recording the emission or the effluent discharged for taxation purposes.
- Eco-tax should be equal to Marginal social cost arising from the negative externality at various stages.
Promoting multiple use of plastics through better waste management
Educating the public on the harmful use of plastics
Providing subsidies for research and development activity for substitute development,
Appropriate disposal mechanisms and waste management and use of waste for constructive usage like roads
Source: This post is developed based on the article “Tackling the plastic problem” published in “The Hindu” on 28th Feb. 2022.
