Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the jetpack domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Notice: Function _load_textdomain_just_in_time was called incorrectly. Translation loading for the avia_framework domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php on line 6131

Warning: Cannot modify header information - headers already sent by (output started at /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/functions.php:6131) in /mnt/stor08-wc1-ord1/694335/916773/www.tvhe.co.nz/web/content/wp-includes/feed-rss2-comments.php on line 8
Comments on: Plastic bags: industry-based solution versus regulation http://www.tvhe.co.nz/2009/04/18/plastic-bags-industry-based-solution-versus-regulation/ The Visible Hand in Economics Mon, 18 Mar 2019 20:31:27 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: goonix http://www.tvhe.co.nz/2009/04/18/plastic-bags-industry-based-solution-versus-regulation/#comment-19143 Mon, 20 Apr 2009 00:54:44 +0000 http://www.tvhe.co.nz/?p=3632#comment-19143 Just because industry might get it ‘wrong’ is no reason to not given them a chance first.

]]> By: rauparaha http://www.tvhe.co.nz/2009/04/18/plastic-bags-industry-based-solution-versus-regulation/#comment-19141 Mon, 20 Apr 2009 00:10:16 +0000 http://www.tvhe.co.nz/?p=3632#comment-19141 As a practical matter, I think that a heuristic of regulating only when the industry has failed to take action would do a poor job of fixing market problems. Certainly, in the case of plastic bags, it is likely that 5c exceeds any identifiable externality. However, in other situations, I’m not so sure that the circumstances would lead to anything approximating an ideal outcome, if such a rule were to be used.

]]> By: goonix http://www.tvhe.co.nz/2009/04/18/plastic-bags-industry-based-solution-versus-regulation/#comment-19140 Sun, 19 Apr 2009 23:56:03 +0000 http://www.tvhe.co.nz/?p=3632#comment-19140 Having said that, one would think 10c per bag would be more practical than 5c. 😛

]]> By: goonix http://www.tvhe.co.nz/2009/04/18/plastic-bags-industry-based-solution-versus-regulation/#comment-19139 Sun, 19 Apr 2009 23:54:12 +0000 http://www.tvhe.co.nz/?p=3632#comment-19139 I’m not assuming 5c is the correct charge. But I think there are two considerations here that are important. Firstly, regulators probably aren’t going to be able to determine the exact social cost of a bag (hence estimates like 5c being thrown around). Secondly, the amount charged must be practical (12.3c per bag would not be, for example). It’s all very well going for a ‘pure’ approach to tackle the problem but practical considerations are also important.

]]> By: rauparaha http://www.tvhe.co.nz/2009/04/18/plastic-bags-industry-based-solution-versus-regulation/#comment-19132 Sun, 19 Apr 2009 20:56:23 +0000 http://www.tvhe.co.nz/?p=3632#comment-19132 @goonix
I think you’re presuming that 5c is the ‘correct’ charge. THAT regulation may not be necessary now, but I don’t see proposed govt regulation as the benchmark for how well we can do. If industry players have no reason to set MC=MSC then we can probably do better than their voluntary action most of the time, which makes it worth investigating irrespective of their commitment.

]]> By: goonix http://www.tvhe.co.nz/2009/04/18/plastic-bags-industry-based-solution-versus-regulation/#comment-19117 Sun, 19 Apr 2009 00:18:49 +0000 http://www.tvhe.co.nz/?p=3632#comment-19117

rauparaha :
I have to say that I find the overall point of the post unconvincing: what incentive does a firm have to ensure that MC=MSC? It reminds me of the fishing industry’s claims that it has the best interests of the fish at heart and doesn’t need a quota system to help it manage them sustainably. I’m not claiming that’s analagous to plastic bags, just that I don’t see firms’ promises to ‘be good’ as particularly credible.

The proposed intervention was for a 5c charge on bags. The industry is moving towards a 5c charge on bags. Whether the 5c charge correctly assigns MC=MSC is not particularly relevent. What is relevant is that the same outcome is being achieved in the absence of regulation and therefore regulation is not necessary.

]]> By: rauparaha http://www.tvhe.co.nz/2009/04/18/plastic-bags-industry-based-solution-versus-regulation/#comment-19116 Sun, 19 Apr 2009 00:14:53 +0000 http://www.tvhe.co.nz/?p=3632#comment-19116 I have to say that I find the overall point of the post unconvincing: what incentive does a firm have to ensure that MC=MSC? It reminds me of the fishing industry’s claims that it has the best interests of the fish at heart and doesn’t need a quota system to help it manage them sustainably. I’m not claiming that’s analagous to plastic bags, just that I don’t see firms’ promises to ‘be good’ as particularly credible.

]]> By: Do you want a sermon with that? « Homepaddock http://www.tvhe.co.nz/2009/04/18/plastic-bags-industry-based-solution-versus-regulation/#comment-19114 Sat, 18 Apr 2009 22:21:52 +0000 http://www.tvhe.co.nz/?p=3632#comment-19114 […] The Visible Hand in Economics posts on industry based solution vs regulation Possibly related posts: (automatically generated)Popular politics leading to bad policyBig Bags […]

]]> By: Homepaddock http://www.tvhe.co.nz/2009/04/18/plastic-bags-industry-based-solution-versus-regulation/#comment-19113 Sat, 18 Apr 2009 22:19:46 +0000 http://www.tvhe.co.nz/?p=3632#comment-19113 I agree there’s no need for the government to get involved.

Off on a tangent: if donating most of the profits from bag sales to help environmental causes is good, why stop there?

Would donating most of the profits from food which doesn’t meet healthy eating guidelines to eg the Cancer Society or Heart Foundation also be good?

]]> By: Standard Potentials in Aqueous Solution (Monographs in Electroanalytical Chemistry and Electrochemistry Series) (Hardcover) | Analytical Mechanical Solutions | Mechanics Solutions http://www.tvhe.co.nz/2009/04/18/plastic-bags-industry-based-solution-versus-regulation/#comment-19109 Sat, 18 Apr 2009 10:58:10 +0000 http://www.tvhe.co.nz/?p=3632#comment-19109 […] TVHE » Plastic bags: industry-based solution versus regulation […]

]]>