For A Stronger & A Greener Economy: Economic Impact of the Plastic Bag Free Market

Plastic bags have a crucial impact on our environment and economy. As a country like Sri Lanka considers outlawing them, many barriers may try to hinder the effort. But it is essential to look at the economical perks of getting rid of plastic bags in the Sri Lankan market. Thus, this piece will explore how this shift could help safeguard the environment, cut costs and open new job opportunities.

To start up, Sri Lanka, as a country that uses and disposes a huge number of plastic bags daily could introduce a plastic bag levy. It is a charge imposed by the government on each plastic shopping bag given out by retailers. The basic intention is to decrease demand for these products hence making them less attractive while encouraging people to start using reusable bags instead. Usually, the levies are imposed at the checkout stage, motivating customers to bring reusable eco-friendly shopping bags. In many cases, revenue collected from this source has gone towards enhancing ecological conditions in natural ecosystems. For example, Ireland introduced a 15 cent per-bag levy that was subsequently increased to 22 cents in 2007 with the view of discouraging its use further, according to the Galway City Council (“Plastic Bag Levy,” n.d.). This levy has evidently decreased plastic bag usage in Ireland and has funded environmental initiatives. Therefore, if well executed, a levy has a tangible influence on both country’s ecology and economy.

Moreover, the plastic bag ban encourages retail companies to choose alternatives. In the USA, Whole Foods Market and IKEA have successfully transitioned to reusable bags, boosting their reputation and customer loyalty. Whole Foods Market stated that customers have embraced the change, incorporating reusable bags into their daily routines to support environmental efforts. (Wfm.Admin, 2009). IKEA has also pledged to eliminate plastic bags by 2030, in line with their sustainability goals. ( IKEA United States, n.d.-b) Despite the initial cost, these changes are considered beneficial for the environment and the long-term success of these projects, reflecting an established commitment to sustainability and customer satisfaction. This has been also shown by the emerging trend of reusable grocery bags in Sri Lanka, such as those suggested by Keells where customers receive Rs. 6.00 discount per each Keells reusable bag presented at the point of checkout. (“Smart ways to save when shopping at a supermarket,” 2022)

Local businesses also have the potential to profit by producing and selling alternative bags, which can create jobs and boost the economy. Chapter 15 of the Ministry of Textiles and Jute (2014), states that investing in environmentally friendly options can lead to growth of Bangladesh like its successful jute bag industry. It is a major part of Bangladesh’s economy, bringing in 4.9% of its total export earnings. Supporting the local production of sustainable bags in Sri Lanka could also strengthen its economy, reduce environmental harm, and diversify business opportunities.

Banning plastic bags impacts smaller businesses and larger businesses in different ways. Small businesses may struggle initially with higher costs to switch to alternative bags, which can cut into their profits, while larger businesses may thrive. In Rwanda, where plastic bags are completely banned, local marketers were advocated to create green options like paper luggage. This not only cut down on plastic waste but also boosted jobs and green industries in the country. (Rwanda: Lessons Learnt from a Pioneer in the Fight Against Plastic Pollution, n.d.) These measures help dilute the financial burden and encourage all businesses to adopt environmentally responsible practices.

To sum up, a ban on plastic bags in Sri Lanka could give the economy a big boost. This move doesn’t just help the environment; it also makes Sri Lanka outshine on the world stage, showing the country is responsible, which can attract more tourists and investors. This sets the stage for a stronger and greener Sri Lanka.

Article By – Senali Senanayake

References

GalwayCity – Plastic Bag levy. (n.d.). https://www.galwaycity.ie/plastic-bag-levy-information#:~:text=The%20levy%20proceeds%20are%20paid,aimed%20at%20protecting%20the%20environment.

Wfm.Admin. (2009, April 6). More shoppers bring their own bags. Whole Foods Market. https://media.wholefoodsmarket.com/more-shoppers-bring-their-own-bags/

Does IKEA provide shopping bags when shopping in a store loc – IKEA United States. (n.d.-a). https://www.ikea.com/us/en/customer-service/knowledge/articles/b2e1007b-bd43-4e0g-bf0b-19269c5c5d7e.html

Smart ways to save when shopping at a supermarket – Yamu.lk. (2022, October 21). https://www.yamu.lk/highlights/smart-ways-to-save-when-shopping-at-a-supermarket/

Ministry of Textiles and Jute. (2014). Chapter 15. In Finance Division, Ministry of Finance. Retrieved July 12, 2024, from https://mof.portal.gov.bd/sites/default/files/files/mof.portal.gov.bd/page/5e31763f_f5b2_4ecb_bf9a_edc8609d2f3f/G-2_05_41_Textile_English.pdf

Rwanda: lessons learnt from a pioneer in the fight against plastic pollution. (n.d.). GGGI – Global Green Growth Institute. https://gggi.org/rwanda-lessons-learnt-from-a-pioneer-in-the-fight-against-plastic-pollution/#:~:text=The%20groundbreaking%20measures%20that%20Rwanda,plastic%20bags%20into%20the%20country%2C