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Plastic Bag Bans Backfired in California and New Jersey, Increasing Waste

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From HeartlandDailyNews.com

By Linnea Lueken

” the FCR report states that polypropylene bag production has caused a 500 percent increase in greenhouse gas emissions, and that it is unlikely the emissions will be offset significantly by bag reuse, since most consumers throw them away far earlier than expected. “

Recent research has revealed that plastic bag bans in California and New Jersey have resulted in an increase in plastic waste, rather than the decrease intended.

A new report from the California Public Interest Research Group (CALPIRG) shows that California’s 2014 plastic bag ban, SB 270, has led to more plastic waste, not less, over the 10-year period since the law was enacted.

Likewise, a report from Freedonia Custom Research (FCR) found that more plastic containers and bags were used in New Jersey after that state’s plastic bag ban. The FCR report also found the increased use of polypropylene bags as a result of the ban contributed to a significant increase in greenhouse gas emissions.

Californians Use More Plastic after Ban

CALPIRG is a consumer advocacy group that supported the initial plastic bag ban and now supports a stricter plastic bag bans in California that removes the “loophole” they claim the existing California law created. The law permits retailers to sell thicker plastic bags for a fee, which CALPIRG said in a January 2024 report led to an increase in plastic waste because customers still treat them as single-use bags.

“While theoretically “reusable,” it appears that many shoppers are disposing of those bags in the same ways as single use bags, potentially undermining the effectiveness of plastic bag bans at reducing plastic waste overall,” CALPIRG reports.

In Alameda County, California, for example, the thicker reusable bags resulted in more plastic waste by weight despite decreasing the number of bags consumed, says the CALPIRG report.

“Since these “reusable” plastic bags are at least four times thicker than typical single-use plastic bags, the estimated 13 million of them sold in Alameda County in 2021 likely surpassed the 37 million single-use plastic bags sold annually pre-ban on a plastic weight basis,” CALPIRG said.

The weight of plastic bags discarded per 1,000 people increased from 4.13 tons in 2004 to 5.89 tons in 2021.

New Jersey Plastic Consumption Spikes

In New Jersey, the results of a 2022 plastic bag ban were similar, according to another, recent report from FCR, a division of MarketResearch.com.

FCR reports that following the thin-film plastic bag ban, the shift to alternatives resulted in a massive increase in plastic consumption.

“[F]ollowing New Jersey’s ban of single-use bags, the shift from plastic film to alternative bags resulted in a nearly 3x increase in plastic consumption for bags,” FCR’s report states. “At the same time, 6x more woven and non-woven polypropylene plastic was consumed to produce the reusable bags sold to consumers as an alternative.”

Despite being advertised as environmentally friendly, the FCR report states that polypropylene bag production has caused a 500 percent increase in greenhouse gas emissions, and that it is unlikely the emissions will be offset significantly by bag reuse, since most consumers throw them away far earlier than expected.

“FCR’s analysis of New Jersey bag demand and trade data for alternative bags finds that, on average, an alternative bag is reused only two to three times before being discarded, falling short of the recommended reuse rates necessary to mitigate the greenhouse gas emissions generated during production and [to] address climate change,” said FCR.

‘More Expensive, Worse for the Environment’

There is a reason why thin-film plastic bags are commonly used in the first place, says H. Sterling Burnett, Ph.D., director of The Heartland Institute’s Arthur B. Robinson Center on Climate and Environmental Policy, and it is not shocking that people began using other types of plastic bags.

“It is not surprising that the plastic bag bans in New Jersey and California backfired, I predicted as much 10 years ago when I was writing on the then relatively new phenomena of plastic bag bans,” Burnett said. “Plastic bags have many virtues, the primary among them being convenience and ease of reuse.”

As in the case with polypropylene bags detailed in the FCR report, attempting to get rid of plastic bags carries costs, Burnett says, and if cities and states were so concerned about the impact of volumes of plastic waste, they should have looked into other solutions.

“Alternatives to plastic bags are more expensive, worse for the environment, and sometimes bad for public health,” Burnett said. “Recycling plastic bags should have been the response to cities concerned about plastic waste, not banning them.”

Not only are the thicker and reusable bags more costly, but the bans drive stores toward returning to paper bags, Burnett says, and support countries like China which stand to gain economically from spikes in reusable bag manufacturing.

“The cities cost themselves, their residents, and the United States economy money, destroying trees and boosting China, which dominates the reusable bag market, in the process,” Burnett said.

Linnea Lueken ([email protected]) is a research fellow with the Arthur B. Robinson Center on Climate and Environmental Policy at The Heartland Institute.

For more on plastic bag bans, click here and here.

Linnea Lueken
Linnea Luekenhttps://www.heartland.org/about-us/who-we-are/linnea-lueken
Linnea Lueken is a Research Fellow with the Arthur B. Robinson Center on Climate and Environmental Policy. While she was an intern with The Heartland Institute in 2018, she co-authored a policy brief ‘Debunking Four Persistent Myths About Hydraulic Fracturing’.

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The EV ‘Bloodbath’ Arrives Early

Automotive

The EV ‘Bloodbath’ Arrives Early

Published on

From the Daily Caller News Foundation

By David Blackmon

 

Ever since March 16, when presidential candidate Donald Trump created a controversy by predicting President Joe Biden’s efforts to force Americans to convert their lives to electric-vehicle (EV) lifestyles would end in a “bloodbath” for the U.S. auto industry, the industry’s own disastrous results have consistently proven him accurate.

The latest example came this week when Ford Motor Company reported that it had somehow managed to lose $132,000 per unit sold during Q1 2024 in its Model e EV division. The disastrous first quarter results follow the equally disastrous results for 2023, when the company said it lost $4.7 billion in Model e for the full 12-month period.

While the company has remained profitable overall thanks to strong demand for its legacy internal combustion SUV, pickup, and heavy vehicle models, the string of major losses in its EV line led the company to announce a shift in strategic vision in early April. Ford CEO Jim Farley said then that the company would delay the introduction of additional planned all-electric models and scale back production of current models like the F-150 Lightning pickup while refocusing efforts on introducing new hybrid models across its business line.

General Motors reported it had good overall Q1 results, but they were based on strong sales of its gas-powered SUV and truck models, not its EVs. GM is so gun-shy about reporting EV-specific results that it doesn’t break them out in its quarterly reports, so there is no way of knowing what the real bottom line amounts to from that part of the business. This is possibly a practice Ford should consider adopting.

After reporting its own disappointing Q1 results in which adjusted earnings collapsed by 48% and deliveries dropped by 20% from the previous quarter, Tesla announced it is laying off 10 percent of its global workforce, including 2,688 employees at its Austin plant, where its vaunted Cybertruck is manufactured. Since its introduction in November, the Cybertruck has been beset by buyer complaints ranging from breakdowns within minutes after taking delivery, to its $3,000 camping tent feature failing to deploy, to an incident in which one buyer complained his vehicle shut down for 5 hours after he failed to put the truck in “carwash mode” before running it through a local car wash.

Meanwhile, international auto rental company Hertz is now fire selling its own fleet of Teslas and other EV models in its efforts to salvage a little final value from what is turning out to be a disastrous EV gamble. In a giant fit of green virtue-signaling, the company invested whole hog into the Biden subsidy program in 2021 with a mass purchase of as many as 100,000 Teslas and 50,000 Polestar models, only to find that customer demand for renting electric cars was as tepid as demand to buy them outright. For its troubles, Hertz reported it had lost $392 million during Q1, attributing $195 million of the loss to its EV struggles. Hertz’s share price plummeted by about 20% on April 25, and was down by 55% for the year.

If all this financial carnage does not yet constitute a “bloodbath” for the U.S. EV sector, it is difficult to imagine what would. But wait: It really isn’t all that hard to imagine at all, is it? When he used that term back in March, Trump was referring not just to the ruinous Biden subsidy program, but also to plans by China to establish an EV-manufacturing beachhead in Mexico, from which it would be able to flood the U.S. market with its cheap but high-quality electric models. That would definitely cause an already disastrous domestic EV market to get even worse, wouldn’t it?

The bottom line here is that it is becoming obvious even to ardent EV fans that US consumer demand for EVs has reached a peak long before the industry and government expected it would.

It’s a bit of a perfect storm, one that rent-seeking company executives and obliging policymakers brought upon themselves. Given that this outcome was highly predictable, with so many warning that it was in fact inevitable, a reckoning from investors and corporate boards and voters will soon come due. It could become a bloodbath of its own, and perhaps it should.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

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Business

Honda deal latest episode of corporate welfare in Ontario

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From the Fraser Institute

By Jake Fuss and Tegan Hill

If Honda, Volkswagen and Stellantis are unwilling to build their EV battery plants in Ontario without corporate welfare, that sends a strong signal that those projects make little economic sense.

On Thursday, the Trudeau and Ford governments announced they will dole out an estimated $5 billion in corporate welfare to Honda so the auto giant can build an electric vehicle (EV) battery plant and manufacture EVs in Ontario. This is the third such deal in Ontario, following similar corporate welfare handouts to Volkswagen ($13.2 billion) and Stellantis ($15.0 billion). Like the previous two deals, the Honda deal comes at a significant cost to taxpayers and will almost certainly fail to create widespread economic benefits for Ontarians.

The Trudeau and Ford governments finalized the Honda deal after more than a year of negotiations, with both governments promising direct incentives and tax credits. Of course, this isn’t free money. Taxpayers in Ontario and the rest of Canada will pay for this corporate welfare through their taxes.

Unfortunately, corporate welfare is nothing new. Governments in Canada have a long history of picking their favoured firms or industries and using a wide range of subsidies and other incentives to benefit those firms or industries selected for preferential treatment.

According to a recent study, the federal government spent $84.6 billion (adjusted for inflation) on business subsidies from 2007 to 2019 (the last pre-COVID year). Over the same period, provincial and local governments spent another $302.9 billion on business subsidies for their favoured firms and industries. (Notably, the study excludes other forms of government support such as loan guarantees, direct investments and regulatory privileges, so the total cost of corporate welfare during this period is actually much higher.)

Of course, when announcing the Honda deal, the Trudeau and Ford governments attempted to sell this latest example of corporate welfare as a way to create jobs. In reality, however, there’s little to no empirical evidence that corporate welfare creates jobs (on net) or produces widespread economic benefits.

Instead, these governments are simply picking winners and losers, shifting jobs and investment away from other firms and industries and circumventing the preferences of consumers and investors. If Honda, Volkswagen and Stellantis are unwilling to build their EV battery plants in Ontario without corporate welfare, that sends a strong signal that those projects make little economic sense.

Unfortunately, the Trudeau and Ford governments believe they know better than investors and entrepreneurs, so they’re using taxpayer money to allocate scarce resources—including labour—to their favoured projects and industries. Again, corporate welfare actually hinders economic growth, which Ontario and Canada desperately need, and often fails to produce jobs that would not otherwise have been created, while also requiring financial support from taxpayers.

It’s only a matter of time before other automakers ask for similar handouts from Ontario and the federal government. Indeed, after Volkswagen secured billions in federal subsidies, Stellantis stopped construction of an EV battery plant in Windsor until it received similar subsidies from the Trudeau government. Call it copycat corporate welfare.

Government handouts to corporations do not pave the path to economic success in Canada. To help foster widespread prosperity, governments should help create an environment where all businesses can succeed, rather than picking winners and losers on the backs of taxpayers.

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