Rory Sutherland has narrated this article for you to listen to.
The standard explanation for why charges for plastic bags reduced waste is economic. People were reluctant to pay 10p for a bag and so brought their own instead.
This is partly true. But it would still be highly effective if the charge for a bag were merely 1p.
That’s because charging any amount, however trifling, was sufficient to change the implicit assumptions about normal retail behaviour. Previously, if you went into Boots and bought, say, a toothbrush and a tube of Anusol, the default was for the cashier to put them in a new bag – it would have seemed rude not to do so. Suddenly, however, the imposition of a charge meant that shopkeepers had to ask whether you wanted a bag or not. Often the answer was ‘no’; you had one already, or, if you were a chap, your clothing was miraculously equipped with things called ‘pockets’.
There are many ways in which you can achieve large changes in behaviour without imposing large economic penalties. For instance, I contend that you could significantly reduce intergenerational inequality simply by the imposition of a property tax of 0.1 per cent annually on all homes. The relatively small amount raised could be hypothecated to fund child benefit, or to reduce the income tax burden on the young. For the purposes of comparison, the typical property tax levied by those well-known leftists in the State of Texas is slightly over 1.8 per cent. Bear me out.
I am borrowing here from the Donald Trump playbook. This is an under-rated approach to legislation where you impose taxes not for their direct effect, but for their symbolic value.
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in