I hosted this discussion on the economics of plastic at the proposal stage of my PhD research to gather stakeholder feedback on the research design. Thank you to the University of Bath Public Engagement Unit for all their guidance in making this possible.

1. The Economics of Plastic
Peter King
PhD Candidate.
Department of Economics
University of Bath

2. Introduction
• 3 parts to my investigation into the economics of
plastic:
• 1) An analysis of the effects of marine plastics.
(Masters dissertation)
• Bit.ly/OceanCleanups
• 2) Small scale policy suggestions to reduce plastic use.
(Masters coursework)
• Bit.ly/Latte-levy
• 3) Large scale policy suggestions to increase plastic
recycling. (Doctoral thesis)
• Why?
• Plastic is a major environmental problem which can
be tackled.
• Marine plastics kill and pollute marine life and
habitats
• Land-based plastics reduce tourism and natural
beauty
• Landfill and incineration of plastics are not viable
long-term solutions
• As a consumer good, it is clear that consumers must
be part of the change

3. • The Ocean Cleanup scheme to
recover plastic in the `Great Pacific
Garbage Patch’.
• Cost-Benefit Analysis method
• Analysis of how profitable it is.
• Evaluation of the wider economic and
social benefits
• Findings:
• Economically, but not financially,
viable to recover marine plastics
Ocean Cleanup

4. Ocean Cleanup

5. Latte-Levy
• Compared whether a tax or a
discount would be more
effective at substituting
disposable for reusable cups.
• Survey evidence suggests a
lower tax is more effective
than a higher discount.
• Some evidence that previous
policies influence how
effective new policies are.

6. Latte-Levy
• Taxes more effective at lower cost
than discounts
• Discount: 32pence
• Tax: 22pence
• Previous policies have no effect:
• Generally for plastic bag tax:
• Tax 18p | Discount 35p
• Generally against plastic bag tax:
• Tax: 16p | Discount 41p
• Understanding of survey
influences answers:
• Definitely sure: difference of 13p
• Probably sure: difference of 11p
• Not sure: difference of 4p

7. Plastic industry
• Identified four problems:
• 1) Firms have no
incentive to make more-
recyclable products.
• 2) Households have no
incentive to separate
waste.
• 3) Exporting of waste
more attractive than
dealing with it
domestically.
• 4) Low demand for
recycled material.
Advisory Committee on Packaging Task Force 2 – PRN Transparency PRN System Guide

8. Methods
• Aim to survey consumers of plastic to see
which measures would help them use less
plastic.
• Specifically:
• Evaluating how environmentally-friendly
behaviours influence consumers willingness to
pay to reduce marine plastics.
• For best results; use specific techniques:
• Certainty statements:
• “How certain are you about this valuation?”
• Banded payment scales:
• “£0 - Would not be willing to accept any price
increases or Price + (£0-1)”
• ‘Cheap-talk’ treatment to mitigate hypothetical
bias

9. Survey
• Part A: Background
• Please specify your gender:
• Please specify your age:
• Could you indicate your highest completed level of
education?
• How would you describe your current employment
status?
• Could you please indicate your approximate
average monthly income?
• Currently, how large is your household?
• And would you say you are responsible for the
majority of purchases in your household?

10. Survey
• Part B: Beliefs
• "Human knowledge and ability will find a way around a
depletion of natural resources“
• "If things continue on their present course, we will soon
experience a major ecological catastrophe.“
• "Given increasing environmental problems with solid waste, I
feel a moral obligation to recycle“
• "Recycling won’t make much difference in the quality of the
environment“
• "Recycling conserves natural resources“
• "Firms have a responsibility to make their products more
environmentally friendly“
• To what extent would you rather manufacturers use more
recyclable packaging, or use less packaging overall?
• Have you seen the 'Blue-Planet' TV series?

11. Survey
• Part C: Valuations
• What is the maximum you would be willing to
pay to reduce marine plastics?
• What tax value per household per year would
you be willing to accept if it funded the recovery
of marine plastics?
• And how certain are you about this choice?
• If one good had an ARF worth 1% of its price, and
another had an ARF worth 5% of its price, how
likely would you be to switch goods to the lower
cost one?

12. • The plastic industry is changing:
• Moving towards ‘lightweighting’ of packaging
• Moving towards more biodegrabable packaging
• However, whether collections and recycling firms are changing too is unclear
• Questions for the audience:
• WouldYOU, be willing to pay, via taxes or crowdfunding, a firm to recover marine plastics?
• Who has the responsibility for environmental pollution?
• What policies would you want to see introduced?
• And finally, do you have any questions about research?
• Scientific research, particularly in the social sciences, welcomes your input!
• Surveys, focus groups and interviews are all highly dependent on participant involvement.
Conclusions

13. Next steps:
• My research:
• Bit.ly/PeterKing
• With thanks to:
• University of Bath Public
Engagement Unit
• University of Bath Department of
Development and Alumni Relations
• How to get involved:
• Follow research institutions
and groups
• Engage with surveys and
interviews
• Consider what changes you
can make that could add up
on a bigger scale.