April 21, 2023

Environmental sustainability is a major issue of public concern, and policymakers are increasingly interested in ways to nudge public behaviour in more environmentally sustainable directions. In ‘Commentary: Singapore will finally charge for plastic bags. What’s next?’ (Channel NewsAsia, March 2023), Professor Sumit Agarwal (NUS Finance, Real Estate, and Economics) raises proposals that go beyond charging consumers for using disposable plastic bags at large supermarkets.

Prof Agarwal first notes that adding a price tag to plastic bags is unlikely to cause a large shift away from using such bags because using them has become an entrenched habit. Instead, he suggests that measures to embarrass users of plastic bags could be mandated, such as printing images of marine animals distressed by plastic waste. This would be similar to the gruesome images of potential health impacts on cigarette boxes sold in Singapore.

He then argues that plastic bags consumed at physical retailers are now only part of the issue. Another more relevant aspect of the problem is the disposable waste generated through online shopping and food delivery services. This is particularly because trends towards these forms of consumption have increased since the COVID-19 pandemic.

Prof Agarwal also proposes that a general carbon score can be implemented for individuals. This score would be computed based on the carbon footprint of the production cycle linked to the products a person buys. Beyond punishing individuals with green taxes, he says that such metrics could also be used to financially reward green consumers, for instance with lower interest rates and higher cashback rates across different financial schemes.

He adds that other ways that may incentivise consumers to use fewer disposable materials could include discounts by merchants for customers who bring their own containers for food orders.

Read the commentary here: https://www.channelnewsasia.com/commentary/plastic-bag-5-cent-charge-supermarket-waste-landfill-sustainability-carbon-score-3354431