Taxing plastics can help lead to a responsible use of the material by triggering the necessary reduction of both production and consumption, a new report finds. However, a plastic tax will only work if designed to influence producer and consumer behaviour, rather than raising revenue.
The study “The price is right … or is it? The case for taxing plastic”, carried out by the New Economic Foundation for the Rethink Plastic alliance, reveals how the European Commission’s proposal to tax unrecycled plastic packaging as part of its future long-term budget, will only incentivise Member States to increase recycling, without actually tackling the underlying problem of unsustainable production and consumption of plastic.