In January, Washington, DC effected a 5-cent tax for each plastic bag distributed in a retail purchase. The result: monthly consumption of plastic bags in the district has fallen from 22m to 3m - absolutely incredible.
D.C. bag tax collects $150,000 in January for river cleanup - washingtonpost.com
In my mind, this is a model for effective, targeted taxation aimed at internalizing environmental externalities. Rather than generating a deadweight loss, the tax moves us into a more efficient use of resources by imposing a cost on consumers for the needless use of plastic bags. What's more, the tax leverages our psychology - it's not necessarily true that we really value a marginal nickel enough to change our behavior; it's that we begin to stop perceiving the bags as 'free' - which of course, in terms of environmental and resource considerations, they are not.
I recently left the district for the west coast, and I desperately hope that my new state adopts this system.
Would you support a similar proposal in your own area? If not, I would be interested to hear the objection. In my view, almost
everyone wins from the new allocation, except those few people with a strong interest in the manufacture of plastic bags.