293-Article Text-1501-1-10-20191231

International Journal of Contemporary Economics and
Administrative Sciences
ISSN: 1925 – 4423
Volume: 9, Issue: 2, Year: 2019, pp. 305-326
DOI: 10.5281/ zenodo.3596081
PLASTIC BAG REGULATIONS FOR A SUSTAINABLE

ENVIRONMENT
Mehmet NAR 1
Received: 19.05.2019, Accepted: 19.09.2019
Abstract
Global issues, which are among the most serious issues of our
times, threaten the existence of humanity and the world. The most basic
concept encountered regarding the aforementioned issues is the concept
of sustainability. This matter becomes even more important especially
when the use of plastic bags is considered. This study, which summarizes
the most recent state of sustainable development, focused on
environmental sustainability and plastic bag consumption and evaluated
the negative effects of plastic bag use on the environment and health. In
this context, the effects of the taxation regulations and pricing policies
implemented against plastic bag use for the sake of creating a sustainable
environment were analyzed.
Keywords: Environmental, Economics, Sustainability, Plastic Bag,
Tax
JEL Classification Indices: Q5, H4, I3
Introduction
Since the 1980s, the use of plastic bags has gained steam all across
the world. Plastic is a popular material that is used in many countries
from Africa and Europe to Australia and America due to its features such
as being hygienic, cheap and durable. However, plastic bags adversely
affect human health and the biological environment as they can remain in
nature as chemical waste.
This brings up the topic of imposing restrictions on fossil fuels,
which are the source of plastic bags. The efforts made to recycle or
dispose of plastic bags require more fossil fuel, which in turn increase
environmental and human costs. This and other similar problems force
countries to take measures such as imposing taxes, bans, and charges in
1 Associate Professor. Department of Economics, Faculty of Economics and Administrative

Sciences, Artvin Coruh University, Turkey. Email: [email protected]
Nar / Plastic Bag Regulations for a Sustainable Environment
www.ijceas.com
order to restrict the use of plastic materials. Although it is difficult to

measure the effects of taxation regulations, the preliminary findings are
promising. With taxes, the fiscal burden on consumers can be increased
and their directing power can be effectively benefited from in creating a
sustainable environment and healthy generations.
Environmental Sustainability
Today, global issues are considerably diversified, ranging from
demography, housing, and economy to politics, administration and
security. In addition to these, perhaps the most important global issue is
the environmental issue. Because global environmental issues are the
kind of issues that reduce biological diversity, destroy the variety of
species, annihilate the operation of biological systems and threaten the
continuity of human life. They result in many fundamental problems
such as climate change, environmental pollution, global warming
(harmful gases creating the greenhouse effect) and the pollution of
natural resources (Attfield, 2018; Lubkemann, 2010; Williams, 2018).
The incremental growth of the aforementioned issues has forced
countries and political institutions to take action in terms of the
legitimacy of the matter. The fact that these issues are global has led to
international cooperation in creating global principles, ideals, ethics and a
common consciousness (Low and Gleeson, 2001; Zhang and Swartz,
2009).
In this sense, the United Nations Conference on the Human
Environment (1972) is the first global conference where sustainable
development and environmental issues were discussed. The most recent
state reached in terms of sustainable development is the 2030 Agenda
(Figure 1). This conference, which was a follow-up to the Millennium
Development Goals, was held in New York in 2015. A total of 17 articles
were agreed upon and accepted with signatures from 193 member states.
The 2030 Agenda is universal, transformative and rights-based. It is an
ambitious plan of action for countries, the UN system and all the other
actors involved. The Agenda is the most comprehensive blueprint to date
for eliminating extreme poverty, reducing inequality and protecting the
planet. It goes beyond rhetoric and lays down a concrete call to action for
people, the planet and prosperity. Instrument type goals are shown in five
boxes: environment, resources, economy, education-health and
governance. The ultimate aim is both to reach social objectives and make
human well-being sustainable (EAC, 2013; Paoli, 2018; United Nations,
2017; Williams, 2018).
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DOI: 10.5281/zenodo.
Figure 1: Sustainable Development Goals

Source: United Nations, 2017. Sustainable Development Goals (Five Categories of
Means-Type Goals)
The word sustainable has roots in Latin, meaning "to hold up" or
"to support from below". A community must be supported from below,
by its inhabitants-present and future (Monto et al, 2005). In other words,
sustainability is the realization of the continuity of productivity for
multiple generations and thus the conservation of the potential of benefits
or interests to exist in perpetuity (Banks, 2005). According to the
classical definition given by the United Nations World Commission on
Environment and Development, development is sustainable if it “meets
the needs of the present without compromising the ability of future
generations to meet their own needs” (Soubbotina, 2004). In addition to
this, some other definitions are as follows: A process, the steering of
which is based on minimizing losses and maximizing benefits. A model
of durability, which ensures a decent existence to residents of the globe
and prevents the self-destruction of the human civilization. A process, in
which the shaping of the world does not collide with decent conditions of
existence and the development of non-human life forms, and which
concentrates on developing and satisfying higher human needs.
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Mankind’s unlimited existence (with quality of life above mere

biological survival) by maintaining (conservation) fundamental life-
supporting systems (air, water, soil, biosphere), the existence of
infrastructure and institutions that distribute and preserve the components
of this system (Pawłowski, 2011; Pawłowski, 2013).
Today it is seen that, the concept of sustainable development is
mostly used to define basic areas such as international financial stability,
market efficiency, health, access to information, peace, security, human
rights and especially global public goods, which are global or regional
goods that are generally related to the environment (Low and Gleeson,
2001; Zhang and Swartz, 2009).
Such goods and services with no competition or exclusion are
divided into three groups: (i) natural global commons: goods that are
very important in terms of the factors that affect human life such as the
ozone layer and global climate, and can be exposed to excessive
consumption with no exclusion and competition (ii) human-made global
commons: goods and services such as universal norms and principles
(human rights), information and internet with no competition or partial
exclusion in consumption (iii) global conditions: areas such as peace,
health, financial stability, freedom from poverty, environmental
sustainability, equity and justice that are unraveled by global conditions.
A continuous and regular supply is necessary in order for these goods to
be considered as global goods. However, as there is no competition or
exclusion in the consumption of the goods and services that are in this
context, it is seen that they are insufficiently supplied within the global
scope (Harris and Roach, 2017; Pawłowski, 2011; Sandler, 1999).
Insufficient supply causes the emergence of public malignancies such as
unbalanced ecosystems, radiation, global warming, human exploitation,
injustice, income inequality, etc. This brings forward the issues of
sustainable conservation of the environment and financing problems
(Soubbotina, 2004; Williams, 2018).
Environmental sustainability is meeting the needs of future
generations without interruption by reducing the discharges of toxic and
other types of pollutants and all other emissions within the life cycle.
With this purpose, it is necessary to create: (i) waste reduction (ii) clean
production (iii) resource efficiency (iv) eco-productivity (v) life cycle
analyses (vı) environmental design and (vıı) integrated pollution
prevention mechanisms in consumption and production based human
activities. The concept of eco-productivity explains the realization of
more production using fewer natural resources and less energy. With
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waste reduction, the management of wastes, from their formation to their
disposal without inflicting damage on the environment or human health
is understood and the main objective is to minimize the use of natural
resources through the recycling of waste (Freinkel, 2012; RG, 2015).
Resource productivity refers to the use of raw materials and products in
the time from their production to their consumption with minimum
environmental effects. Clean production is the encouraging of the use of
materials that are non-toxic or have low toxicity in the production phase.
By this way, the waste of resources is prevented and pollution can be
fought effectively. By making real-time life cycle analyses it is aimed to
investigate the environmental effects of products and services in detail.
With the environmental design method, it is aimed to develop
environment-friendly products in other areas of production, particularly
products that save energy. In addition, with the integrated pollution
prevention and control mechanism, the aim is to protect the
environment at the highest level (EPA, 2017). Thus, the use of clean
technologies (wind energy etc.) becomes obligatory for the prevention of
the emissions and waste that result from large industrial and agricultural
processes. For example, only the companies that fulfill the determined
environmental conditions can operate. Therefore, it would be possible to
make a systematic analysis of the interaction between industrial systems
and ecological systems that results from physical, chemical and
biological relationships. In the end, an approach that sees human beings
and the environment as living organisms in the production and
consumption relationships emerges (BSTB, 2012; UNEP, 2010).
On the other hand, computation mechanisms such as ecological,
carbon, and water footprints are resorted to for the sake of environmental
sustainability. An ecological footprint is a measure of the amount of
bioproductive land and sea required to support a person’s lifestyle. It
includes the land needed to grow their food, dispose of their waste and
absorb their carbon emissions. It is used to calculate the burden of
humans on nature. Carbon footprint is a measure of how much CO2 is
emitted as a result of all aspects of everyday life (Calcott and Bull, 2007).
This method is again a good way to measure the effects of the damages
we cause to the environment. The water footprint shows the amount of
water humans consume. It is calculated according to the amounts of
water consumed by individuals, communities or businesses or the
contaminated water volume. These measurements provide the necessary
data for freshwater bodies to be conserved in a sustainable way (Harris
and Roach, 2017; UNESCO, 2008; Wikipedia, 2018).
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Financing Environmental Sustainability

The excessive consumption of natural resources in parallel with the
growth in the world's population causes environmental issues to increase.
The conservation of the environment brings the issue of financing into
question. Although, in practice, it is not possible to talk about any
financial mechanisms that were presented clearly, global taxes are among
the leading methods used in solving environmental problems (Andersen
and Lindsnaes, 2007; Soubbotina, 2004).
Global taxes were first defined by forensic scientist James Lorimer
(1884) in his book titled The Main Issues of International Law. Even
though global taxes were mentioned in the period when the United
Nations was established, these taxes lost their importance as a result of
the opposition from the United States government and large companies.
There was no new perspective in this subject until James Tobin's (1972)
tax proposal, namely the Tobin tax. With this tax, Tobin suggested
collecting tax over short-term international capital movements. In 1977,
the tax was considered as a possible source of income to combat
desertification by the Washington-based Brookings Institute. In the year
1980, the United Nations, started applying global tax on seabed mining in
accordance with the change made in the Law of the Sea Treaty. Global
taxes were defined in the United Nations World Conference and the 2001
Zedillo Panel Report as "an obligation that is financed by a large number
of countries and needs to be supplied from new and permanent sources".
Below are the global taxes and other sources of income that are applied
or considered to be applied (Perman et al. 2011; Cnossen, 2005; Moyer
and Hyman, 2016).
• Taxes, User Charges, Fees and Levies: carbon taxes, aviation Tax,
currency transaction tax, email and internet tax, world trade tax,
international arms trade tax.
• Market Creation and Strengthening: leases, sale and trading permits,
the Emissions Trading System.
• International Public Sources: contributions of international financial
institutions and organizations such as IMF, WB, UN and WTO.
• National Public Sources: official development assistance, debt relief
and debt-for-sustainable development swaps, reducing or removing
perverse subsidies.
• Private Sector Resources: contributions of for-profit corporations,
non-profit corporations.
• Global Environment Facility (GEF): The intergovernmental
institution that tries to bring global benefits such as diversity, climate
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change, the conservation of international waters and the ozone layer,
and the reduction of chemical materials that can remain in nature
without dissolution to the highest level and provides grants for this
cause (Binger, 2003; Cnossen, 2005; Harris and Roach, 2017).
Because human life is primarily dependent on environmental
factors, global taxes related to the environment possess vital importance.
These taxes are evaluated in the context of green tax reforms. The idea of
the taxation of environmental pollution and the internalization of the
emerging external costs (polluter pays) in theoretical literature was first
mentioned by Pigou (1920) in his book titled The Economics of Welfare.
This idea formed the basis of the theoretical studies. Pigou proposed a
general environmental tax for the prevention of the pollution caused by
the fog problem in London. An effective environmental tax is calculated
as a tax that is equal to the marginal loss per unit (Cherry et al. 2008;
Daugbjerg and Svendsen, 2001; Moyer and Hyman, 2016).
Environmental taxes are composed of (i) energy taxes (ii)
transport taxes (iii) pollution taxes and (iv) resource taxes. Energy taxes
are the taxes put on energy products that are consumed both in
transportation and for fixed purposes. The most important energy
products that are consumed in transportation are gasoline and diesel,
while the energy products that are consumed for fixed purposes are fuel
oils, diesel fuel, natural gas, coal and electricity. Carbon dioxide taxes are
also categorized under energy taxes instead of pollution taxes. This is
because carbon dioxide emission is directly related to energy
consumption. Transport taxes are the taxes related to the ownership and
use of motor vehicles. These taxes are concerned with transport
equipment in the form of airplanes, ships or railroads and the
transportation services carried out with this equipment. For example,
while this tax can be applied once during the importation or sale of
airplane equipment, a tax under the name of road tax can be taken from
the transportation services that are carried out with airplanes (charter or
scheduled flights). Pollution taxes are taxes that are applied to air and
water emissions, levels of solid waste and noise pollution. Resource
taxes include the taxation of matters related to the extraction of water
resources or the consumption of forests. Within this context, these taxes
aim to ensure the sustainability of forests and natural life such as wild
flora and fauna (European Commission, 2016; OECD, 2001).
In the past ten years the share of environmental taxes in total tax
revenues has been growing. However, despite this, pollution rates have
been increasing above average. On the other hand, the share of the taxes
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that are collected from employee compensation within the total tax
revenue has remained more or less stable in recent years. Therefore, with
eco-taxation which aims to bring an ecological tax reform or solve
environmental problems, it is aimed to make natural resources
sustainable, and reduce the tax burden on labor by encouraging
environmental taxes. Today, the most popular taxes of this kind are
carbon dioxide taxes or the taxes that are applied to plastic bags. These
taxes are in force in a large number of EU countries and it can be said
that environmental taxes in general have been gaining steam since the
second half of the 1990s (Attfield, 2018; OECD, 2001).
It is obvious that environmental taxes have serious contributions
toward the establishment of environmentally conscious economic
growth. Within this scope, the 6th Environmental Action Plan of the EU
is extremely important. Work towards the 7th Environmental Action Plan
is ongoing in order to ensure the functioning of the process until the year
2050. These works reiterate the essential principles of the environmental
policies of the Lisbon Treaty of 2009. According to the treaty, it is
necessary to (i) establish effective international cooperation for the
conservation of natural capital (ii) consume and produce resources
effectively with a rational and environmentalist mentality and (iii) benefit
from environmental taxes effectively in order for human health to be
protected from threats related to the environment. 75% of the
environmental taxes collected in the EU-28 are made up of energy taxes
and transport taxes, with the weight mainly on the former. Pollution taxes
are in third place at 21%, while resource taxes come in last place at 4%.
Denmark is the country where environmental tax revenues are the highest
in proportion to gross domestic revenue. According to data collected in
2012, Turkey is among the countries, along with Denmark and Slovenia,
that collect the most environmental tax, while Spain has the lowest rate
(European Commission, 2016; OECD, 2014).
Furthermore, it is predicted that the tax revenues collected from
plastic bags, as with carbon taxes, will reach significant levels in later
stages. This makes one think that environmental taxes can also be used
towards closing budget deficits in addition to environmental protection
activities, which are their main aim (Heine et al.2012; OECD, 2014).
Plastic Bag Issue
When talking about environmental protection activities, (i)
traditional command and control tools, which are prohibition and
supervision mechanisms, are emphasized. By using such tools pollution
control can be ensured at a lower cost (ii) Economic stimulus-driven
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regulations try to encourage individuals or businesses towards more
ecological activities (iii) Market-based applications such as subsidy,
pollution permits (marketable permit) and especially taxation are the
most effective tools in terms of environmental sustainability. However, it
is not possible to completely write-off plastic materials from our lives
even if we implement all the other methods including taxational
mechanisms, and neither is this the aim of tax regulations. The main aim
of tax regulations is to create a habitat that is environmentally conscious,
healthy and sustainable (Joseph and Greene 2015; Markandya, 1998;
Plastics Europe, 2014).
In reality, plastic is a material that is too valuable to be thrown
away as it is the raw material of many objects used in daily life. It is
mostly produced for one-time use and its amount of production
worldwide is increasing day by day (Figure 2). Plastic production has
increased by 8.7% year on year from 1.7 million tons in 1950 to 288m
tons in 2014. China is the world’s biggest producer of plastic, accounting
for almost a quarter of the output. The annual consumption of plastic
bags is around 600 billion. In the USA, 150 billion plastic bags are
consumed annually. This corresponds to 15 million barrels of petrol per
year (Gibson et al, 2014; Joseph and Greene, 2015; UNEP, 2014).
Figure 2: Plastic Production

Source: UNEP, 2014. Plastic Production (Per Region- Million Tonnes)
Paper can have plastic packaging and so can plastic itself. Almost
everything is made of plastic. Many materials, from the protection of
food and items such as plates, forks and knives to clothing items and
children's toys, are manufactured from plastic. The use of plastic appears
as an important factor in cost-efficiency calculations. That is because the
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share of plastic within costs is extremely low. This way, more resource
efficiency is achieved. In addition, more than half of all product
packaging is of plastic, while safer water consumption is provided with
plastic bottles. The efficient, strong and safe structure of plastic is
benefited from in many areas including vehicle tires, car parts, window
frames, smartphones, sports and construction equipment and protection-
oriented materials such as hardhats and barriers (Markandya, 1998;
Plastics Europe, 2014).
In addition, plastic bag production supports energy conservation by
spending 40% less energy compared to paper bag production, and helps
to reduce fuel emissions. Moreover, in comparison to the production of
paper, the production of plastic requires 70% less air usage and 4% less
water consumption. Plastic bags reduce the need for storage space as they
take up very little space compared to paper bags. Furthermore, the
recycling of one kilo of plastic requires 91% less energy than the
recycling of the same amount of paper. Therefore, plastic bag
manufacturers strongly oppose the plastic bag tax due to these and other
similar reasons. Those who support the tax on the other hand say that the
monetary enforcements that emerge with taxation lead people to behave
more sensitively. Just as in taxation psychology, because the agitation
caused by the sense of loss (paying tax) in humans is greater than the
pleasure that is taken from using plastic (cheapness, simplicity, comfort),
individuals generally adapt to the preferred course of action. Paying the
tax resulting from the use of plastic materials creates financial
deprivation in individuals. In fact, individuals do not prefer plastic bags
unless necessary. This way, the individual does not experience a financial
loss of money by not using plastic bags and prevents the pollution of the
environment in a moral sense. However, the sacrificed convenience
results in being deprived of the basic functions provided by the use of
plastic bags such as cheapness, comfort, hygiene, lightness and durability
(Lipscomb, 2008).
Waste problem that arises from plastic bag use is actually the main
reason behind the taxes imposed on these products. With these taxes, it is
aimed to: (i) make up the deficiency of waste collection areas, (ii) reduce
the monetary costs that result from burning, stowage and regulation
needs in the process of plastic waste disposal, and (iii) prevent
environmental and human costs. That is because plastic bags, which are
made from carcinogenic (toxic) materials and contain ethylene, oxide,
benzene and xylene are very harmful to health and the environment.
Apart from the diseases in humans that result from toxic materials, they
affect the whole of life with their negative effects on animals, living
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organisms, air quality, plants and water resources. In addition to this, the
disposal of this material is also an important problem. That is because
there are two important disposal methods that are in the form of burning
plastic bags or throwing them away and the use of both methods result in
toxic chemicals being released. It should not be forgotten that the
transformation of a plastic bag into small particles in nature takes
thousands of years. Therefore, the "taxational regulations" manifested by
countries are regarded as an important instrument. In practice, it is seen
that taxational regulations reduce the rates of plastic bag use
considerably. Also, the recycling action plans that countries put into
practice increase the rates of recycling considerably (Green Living, 2014;
Nordic Council of Ministers, 2006).
Unsustainability and Negative Health Effects of Plastic
Concerns regarding the effects of plastic on human health
increasingly continue. There are 125.000 chemicals in the world today,
very few of which have been tested in terms of their effects on human
health. Today, in order for chemicals to be able to go into use in Europe
they must be proved to be harmless. However, in the USA, they must be
proved to be harmful to health in order for their use to be prohibited. The
most basic problem is the presence of phthalate, which is used to soften
plastic and bisphenol-A, which is used to harden it. Both materials are
known as endocrine disrupters. Bisphenol-A is actually the main
component of synthetic estrogen and polycarbonate. Polycarbonate is
hard and clear plastic and is used in water bottles, storage boxes, baby
bottles, sports equipment, electronic devices and the inner liners of all tin
cans including baby formulas. In an experiment that was conducted on
animals, it was proved that this material causes hyperactivity and
learning disorders and can also lead to disorders in the brain system and
visible attention deficit and hyperactivity in humans. There is also strong
evidence that it causes gender shift in terms of the reproductive system.
This means that male children become more feminine and female
children become more masculine. Plastic is also associated with
problems such as pancreatic and breast cancer, low sperm count, early
puberty and miscarriage. In fact, 92% of more than 200 state-funded
researches address problems originating from Bisphenol-A and point out
that plastic and PVC pose significant threats to our environment, health
and the creation of sustainable generations (Attfield, 2018; Schierow and
Lister, 2010; Titow, 1986; TRT Belgesel, 2018).
Another chemical found in plastic is phthalate, which is the
common name of a group of chemicals. It is found in personal care
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products, toys, floor coverings such as vinyl floor covering and mostly
PVC. The disorders it is associated with are nose inflammation, asthma,
early breast development, insulin resistance, premature birth, obesity,
eczema and thyroid disorders. In reality, we all wash ourselves with
phthalate. It is not mandatory to specify this material in the labels of
personal care products. However, the terms fragrance and perfume on
labels mean that the product contains phthalates. In a research carried out
by the University of Washington baby urine were tested and according to
the results it was determined that the more creams, lotions, powders and
shampoos are used on babies, the more they are exposed to Phthalate.
American actor Peter Coyote is one of the few people that has had his
body contents tested. Coyote spent two days eating canned food, heating
food in plastic containers in a microwave oven and using shampoo,
lotions, deodorant and air freshener. In the analysis conducted
afterwards, it was revealed that the chemical material accumulation in his
body increased by 11 times. This can cause a gender shift in babies to be
born. In spite of this, six phthalates were prohibited in the USA and six
different baby bottle manufacturers seized the production of all toys
containing Bisphenol-A (Schierow and Lister, 2010; Titow, 1986; TRT
Belgesel, 2018).
The pro-plastic bag social movements started in the late 1970s with
the aim of saving trees and recycling (energy conservation) and continues
to this day. Plastic is an important material but it does not belong in our
bodies or our seas. Almost all of the garbage mountain located in the
middle of the Pacific Ocean consists of plastic. Plastic bags fly off into
rivers and then ocean. The seas and oceans make up 97% of the water in
the world. Therefore, preserving these areas is one of our most important
duties as humans. Failing to do so will result in the economic, physical
and chemical effects caused by the plastic in the oceans (Figure 3) to
increase and create bigger problems in the future.
Today, 260 species are being harmed due to digesting plastic or
getting entangled in it. More plastic has been produced since the year
2000, than in the last century. The amount of plastic produced, which
was ½ million tons in 1950, reached 260 million tons in the period
between 2000 and 2010. One-third of this production consisted of
disposable products such as plastic bags, plastic plates and plastic forks
and spoons. The large creatures in the oceans decreased by 90% and
annually 100.000 sea creatures lose their lives due to this (Schierow and
Lister, 2010; Tim and Tim 2014; TRT Belgesel, 2018; UNEP; 2014).
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Figure 3: Impacts of Plastic

It is inevitably that the usage of disposable products must stop for
the sake of a sustainable environment and sustainable generations. Not
drinking water from plastic bottles, preferring products with less
packaging and carrying fabric bags are some of the recommended
applications that can be carried out for this aim. Biodegradable bags
made of non-GMO corn specifically for this purpose have replaced
plastic bags in Fairfax, California (Chipkin and Herrero, 2012). Efforts
towards prohibiting the use of plastic bags in public institutions are
important in terms of sustainability. For example, the use of plastic bags
is prohibited in the Freie Universitat Berlin state library. In addition,
plastic bottles can be converted into cash by being thrown in the
machines that are placed in the entrances of supermarkets in Germany
(Legrand et al, 2013). In Bangladesh and China, the production and
consumption of some disposable plastic bags are completely prohibited
(Tan et al, 2008). While in England, biodegradable designs and the
production of non-toxic plastic bags are state-subsidized. The use of
recycled materials is very important, as making new materials from old
ones provides a vast amount of energy conservation (Lewis, 2012). For
example, much like making furniture from scrap trees, producing new
coke bottles from waste benefits industries considerably (Blackman and
Carter, 2009). Furthermore, the prohibition of the use of plastic bags
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would minimize the harmful effects of the toxic colorant materials on

these plastic bags on the environment and humans (Kohak, 2000). In
conclusion, the need to establish regulatory committees to limit the
production of these materials and to ensure environmental sustainability
is among the analytical methods in this respect (Hendrickson et al, 2006).
Plastic Bag Tax and Practices of Countries
A great number of countries have obliged each customer to pay tax
or a fee for disposable plastic bags, with the regulations that were made
in their tax laws. The results of doing so indicated that plastic bag usage
decreased significantly (Scorse, 2010). With the increase in paper bag
usage, it was also aimed to protect natural habitats such as oceans, rivers,
lakes and wildlife and decrease the pressure on waste formation.
Additionally, the taxes that are collected from plastic bags are
compulsory payments. In this context, the relationship between the tax
assessment and the environment should be established implicitly. In other
words, it is necessary to establish a connection between plastic bags and
taxation by determining the proven negative effects of plastic bags on the
environment (NCSL, 2014; Tietenberg and Lewis, 2018). Furthermore,
there is also a significant difference between the tax that is collected from
plastic bags and the prices charged for these bags, as environmental
charges are taken for specific environmental services, while taxation is a
more general concept. In this regard, although the charges are close to the
tax, the obligation of taxes and implementation of them throughout the
country are the key determinant differences (Nordic Council of
Ministers, 2006; Sinha and Plamondon, 2017).
Figure 4 shows the countries or regions in which plastic bags are
banned or taxed. Countries that have banned plastic bags are shown in
red, countries that have taxed them are shown in green and countries that
have partially banned and taxed them are shown in yellow. The starred
regions such as the USA, Canada and Australia indicate that there are
bans or tax application in certain states. Approximately one million
plastic bags are consumed in a minute, while approximately one trillion
disposable plastic bags are consumed annually around the world. For the
solution to the plastic bag issue, many countries have carried out tax
regulations. Denmark was the first country to apply environmental taxes.
In 1993 it started to collect plastic bag tax in accordance with the weight
of the bags and by doing so plastic bag usage decreased by 60%. Another
efficient application on this subject is the national bag levy which was
accepted in Ireland in 2002. According to this tax 15 euro was taken per
bag, which in turn decreased plastic bag usage decreased by 90% in five
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months. The village of Modbury in England was the first village that
banned nylon bag usage in Europe. In Germany, supermarkets charge 5
to 10 euro per plastic bag. Germans used 7 billion plastic bags in the year
2000, this number decreased to 6 billion in 2012. There are similar
implementations in Belgium, Italy, France, Latvia, and Holland. For
instance, the taxes on plastic bags in Belgium and Italy reduced
consumption by over 90%. Bulgaria introduced a tax for each bag in
October 2011 and bag consumption decreased by 70% in the first year of
the application (Daugbjerg and Svendsen, 2001; Larsen and Venkova,
2014; Turner et al, 1998).
Figure 4: Where are Plastic Bags Banned or Taxed Around the

World?
Source: Priceonomics. Bans/taxes exist in certain states and provinces in the U.S,
Canada and Australia
Waste taxes were first introduced in 1996 in England, which has

the strictest anti-plastic bag usage in the world. Although English tax
applications are relatively low when compared to the tax rates of other
European countries, they have reached significant results. First of all,
plastic bag usage decreased by 30%. In addition to this, as a result of
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reaching high amounts in the environmental taxes collected, the

government decreased the social security contributions paid by
employers. Therefore, tax revenues were returned to producers,
employment and the economy. In this application, Marks & Spencer,
which is one of the leading companies in England, started to charge 5
pence for plastic bags in the food sections from 2008. In Wales, from the
year 2011 all shops began charging 5 pence for disposable plastic bags.
Northern Ireland implemented the same application in 2013 and Scotland
joined the countries that charge fees for plastic bags in October 2015
(Daugbjerg and Svendsen, 2001; Larsen and Venkova, 2014).
In the USA, over 100 states implement anti-plastic bag regulations.
In addition to this, California banned disposable plastic bag usage from
July 1, 2015. San Francisco is the first cities in the USA to charge fees
for plastic bags. In the District of Columbia, disposable and non-
recyclable plastic bag usage is prohibited in markets, drug warehouses,
liquor shops, restaurants and food companies. In Hawaii, there is a virtual
government prohibition. In Austin, which is the capital of the state of
Texas, and in 11 cities including Dallas, there are bans or charges against
plastic bags. The state of Maine, on the other hand, is in the process of
finding a permanent solution to the plastic bag issue. In New York,
within the scope of the recycling law, shops have implemented a deposit
scheme, which guarantees that customers return the plastic bags to the
shops. North Carolina encourages paper bag usage. In certain areas (such
as sea turtle nesting site) plastic bag usage is prohibited completely. In
Alaska, plastic bag usage is prohibited in nearly 40 rural settlements. In
Rhode Island, paper and cloth bags are distributed to people with
promotion exercises in order to reduce plastic bag usage. Since 1 January
2015, the output of plastic bags has been prohibited in all scales of retail
shops. In Pennsylvania, shops that have an annual turnover of more than
$1.000.000, charge two cents for disposable plastic bags. 50% of the
income that is obtained from these charges are transferred to the IRS as
tax revenue, while the other 50% is collected by the company itself
(NCSL, 2014; Nordic Council of Ministers, 2006; Tietenberg and Lewis,
2018).
Similar applications can be seen in Mexico and Chile on a local
level. In the city of Rio de Janeiro, Brazil in 2010 middle and large-scale
supermarkets began enforcing a specific tax on the number of plastic
bags used by the customers and later began applying $0.03 discounts for
each item that is put in the bags. Furthermore, for every 50 plastic bags
brought to the stores by customers, food products such as rice or bean are
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given or in some cities plastic bags are traded for cloth or reusable bags
(Attfield, 2018; NCSL, 2014).
In Asia, the application of collecting tax from customers in parallel
with the number of disposable bags decreased the usage rates by 24% in
South Korea. Additionally, a great number of Korean citizens bring their
own cups to cafés due to the taxes on plastic cups or bring their own
shopping bags to shops. In Bangladesh, plastic bag usage, which is
considered as one of the major reasons for sewage faults, has been
limited substantially. In China, several states and cities developed
policies for restraining plastic bag usage in the 1990s, but the level of
achievement remains limited in application. China implemented a series
of laws that limit the production and consumption of plastic bags with the
Olympics held in Beijing. In this context, a charge way above the normal
costs was applied to bags of a certain thickness. After one-year, plastic
bag usage decreased to 40 billion bags and in 2013 and the number of
saved plastic bags reached 67 billion. In 2009, big supermarkets and
shops in Hong Kong started to charge 50 cents for plastic bags. In 1999,
the government in India banned the usage of thin plastic bags that are
used for carrying food due to the fact that they block the canals in severe
flooding incidents and increase the number of deaths. In Bombay,
activities against banning the usage of plastic bags are in progress
(Larsen and Venkova, 2014; Scorse, 2010).
In Africa, Botswana implemented similar regulations in 2007,
which decreased plastic bag usage by 50% after 18 months. Also in 2007,
Kenya banned the production and importation of plastic bags. Rwanda
implemented similar taxational regulations. Since the implementation of
a new law in 2008, passengers that enter the country by plane are obliged
to hand over any plastic bags they are in possession of from the moment
they arrive. In South Africa, thin plastic bags were banned in 2003.
Furthermore, the government implemented a law which charges
customers for thick plastic bags and by doing so plastic bag usage
decreased by 90%. Tasmania was the first state that banned plastic bags
in 2003 in Australia, with the aim to protect natural life in general and
whales and national parks in particular. Northern Territory and
Australian Capital Territory states implemented their own bans against
plastic bags in 2011 (Attfield, 2018; Larsen and Venkova, 2014).
In Turkey, plastic bag tax was first implemented locally by the
Kadıköy Municipality in 2010 (Larsen and Venkova, 2014). In 2019, tax
for each bag was implemented on a national level, under the name of the
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plastic bag tax. As a result, plastic bag consumption decreased by 65-

70% in the first month of the implementation.
Conclusion
Plastic manufacturers state that implementing taxes on plastic bags
is meaningless as plastic materials protect water sources by decreasing
water consumption, are reliable and durable, provide significant cost
savings compared to the production of other similar products, solve the
problem of solid waste storage and contribute to the environment within
the context of recycling. On the contrary, those who defend tax
regulations and bans state that plastics are carcinogenic, damage food
chains, significantly pollute water, air, sea and oceans, increase the death
of animals, cause the death of humans leading to blockages in sewages
and in turn floods, threaten natural resources by decomposing in a longer
time compared to other solid wastes and their elimination causes
significant financial and environmental costs.
Tax implementations against the prevention of costs are important
in terms of demonstrating the sanction power of taxes. Studies indicate
that on average taxes have decreased plastic bag usage by over 70%. The
taxes are mostly particular, in that they are usually collected according to
the number of plastic bags. Additionally, there are tax regulations that are
based on ad valorem, meaning that the taxes are taken on the
value/content of the shopping bags. There is also an application in which
deposits are applied to the bags. Another solution is subjecting bag
manufacturers to high taxes in the manufacturing stage. On the contrary
to this, state support and subsidy could be offered to eco-friendly,
biodegradable bag producers. Local governments could create plastic bag
waste tracking systems, in which each municipality could record the
increase or decrease of plastic materials in their districts in recycle
centers. According to the records, the districts that have less waste
monthly or annually could pay less environmental tax, while the districts
that have more waste could be subjected to higher tax rates.
All incomes that are collected through charges and recycling
should serve their actual purpose, that is, should be spent on the
protection of the environment and not turned into a tool for the financing
of budget deficits. Otherwise, as stated by environmental activist Paul
Watson, “Nature solves its problem by itself. If we are the problem, it
will perceive us as a problem and solve us as well. Being an
environmentalist is protecting nature and ourselves. We are in fact trying
to protect ourselves. If we don’t learn how to live in the ecosystem,
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nothing will happen to the world, we will be the ones that vanish off the
face of the earth.”
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International Journal of Contemporary Economics and

PLASTIC BAG REGULATIONS FOR A SUSTAINABLE

Received: 19.05.2019, Accepted: 19.09.2019

1 Associate Professor. Department of Economics, Faculty of Economics and Administrative

order to restrict the use of plastic materials. Although it is difficult to

Figure 1: Sustainable Development Goals

Mankind’s unlimited existence (with quality of life above mere

Financing Environmental Sustainability

Figure 2: Plastic Production

Figure 3: Impacts of Plastic

would minimize the harmful effects of the toxic colorant materials on

Figure 4: Where are Plastic Bags Banned or Taxed Around the

Waste taxes were first introduced in 1996 in England, which has

reaching high amounts in the environmental taxes collected, the

plastic bag tax. As a result, plastic bag consumption decreased by 65-

Tim, D. & Tim, M. (2014). Beyond Sustainability: A Thriving

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