Scotland – Executive issues extended impact assessment on proposed plastic bags levy

The Scottish Executive has issued an extended impact assessment on proposals to introduce a levy on plastic bags. The study predicts this will stimulate a move away from plastic bags, which would have some environmental benefits depending on what material is used as a substitute.

Mike Pringle MSP has tabled a Members Bill in the Scottish Parliament to impose an environmental levy on lightweight plastic carrier bags as provided by shops and other retail outlets. It is understood that this would cover all bags made partially or completely of plastic, with the exception of those used for directly packing of fresh meat, fish, fruit and other foods.

This brief study, commissioned by the Scottish Executive and undertaken by AEA Technology Environment and associates, has addressed the likely impacts of such a levy and variants of it on: – The environment. – Consumers. – Business. – Waste. – Local authorities.

Advocates of a levy on plastic bags cite the main benefits as being reduced littering (including marine litter), reduced use of resources and energy, lower pollutant emissions and increased public awareness of environmental issues.

Opponents argue that lightweight plastic carrier bags are hygienic, convenient and durable, that they are often reused for other purposes, that they form only a small part of the litter stream and that they have a lower overall environmental impact than paper bags. They also claim that a levy would impact unfairly on poorer households and would lead to job losses in Scotland (from reduced plastic bag manufacturing and importing).

The study has considered these and other arguments for and against a levy, quantifying the probable effects wherever possible. It considered a range of different scenarios:

Scenario 0: No levy, i.e. business as usual
Scenario 1A: A levy of 10p on plastic but not paper bags, covering all businesses (as proposed in the Bill)
Scenario 1B: A levy of 10p on plastic but not paper bags, covering all businesses except small and medium sized enterprises (SMEs) and charities
Scenario 2A: A levy of 10p on plastic and paper bags, covering all businesses
Scenario 2B: A levy of 10p on plastic and paper bags, covering all businesses except SMEs and charities

A wide range of evidence has been used to inform the study. This includes experience from the PlasTax in Ireland and voluntary schemes in the UK along with results from life cycle analysis (LCA) studies from France and Australia. The study does not make a judgement on whether, on balance, such a levy should be introduced, but provides evidence on the main effects expected under each of the four levy scenarios.

Overall effects

A levy would cause a set of interacting effects. The study is predicated on evidence that a levy would stimulate a switch away from use of plastic bags (by typically 90%). If only plastic bags were to be levied (scenarios 1A and 1B), then studies and experience elsewhere suggest that there would be some shift in bag usage to paper bags (which are claimed to have worse environmental impacts).

This study is based on this experience of behaviour change. In each of the areas considered – environment, consumers, business, waste and local authorities – there would therefore be a complicated set of effects, but in general as follows.

Environment

The environmental impact of each of the four levy scenarios was assessed using 8 indicators. These include energy, water, waste and litter. Under the levy as proposed (scenario 1A) 5 out of the 8 indicators show an improvement. There are different impacts under each levy scenario. In particular, including paper bags increases the potential environmental benefits of a levy (e.g. scenario 2A or 2B) where all 8 indicators improve. In all cases the changes in environmental indicators due to a levy are modest (i.e. 1% or less) in comparison to overall environmental impacts from other activities in Scotland.

Consumers

Consumers act to