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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’.

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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Taxpayers criticize Trudeau and Ford for Honda deal

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From the Canadian Taxpayers Federation

Author: Jay Goldberg

The Canadian Taxpayers Federation is criticizing the Trudeau and Ford governments to for giving $5 billion to the Honda Motor Company.

“The Trudeau and Ford governments are giving billions to yet another multinational corporation and leaving middle-class Canadians to pay for it,” said Jay Goldberg, CTF Ontario Director. “Prime Minister Justin Trudeau is sending small businesses bigger a bill with his capital gains tax hike and now he’s handing out billions more in corporate welfare to a huge multinational.

“This announcement is fundamentally unfair to taxpayers.”

The Trudeau government is giving Honda $2.5 billion. The Ford government announced an additional $2.5 billion  subsidies for Honda.

The federal and provincial governments claim this new deal will create 1,000 new jobs, according to media reports. Even if that’s true, the handout will cost taxpayers $5 million per job. And according to Globe and Mail investigation, the government doesn’t even have a proper process in place to track whether promised jobs are actually created.

The Parliamentary Budget Officer has also called into question the government’s claims when it made similar multi-billion-dollar handouts to other multinational corporations.

“The break-even timeline for the $28.2 billion in production subsidies announced for Stellantis-LGES and Volkswagen is estimated to be 20 years, significantly longer than the government’s estimate of a payback within five years for Volkswagen,” wrote the Parliamentary Budget Officer said.

“If politicians want to grow the economy, they should cut taxes and red tape and cancel the corporate welfare,” said Franco Terrazzano, CTF Federal Director. “Just days ago, Trudeau said he wants the rich to pay more, so he should make rich multinational corporations pay for their own factories.”

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