Showing posts with label Fraser Institute. Show all posts
Showing posts with label Fraser Institute. Show all posts

Thursday, January 17, 2013

War on Plastic Bags: Debunking Three Popular Myths

I previously wrote about the unfounded claims on the supposed environmentally baneful effects from plastic bags.

Canada’s Fraser Institute offers their case by dealing with 3 popular myths: (bold and blue highlights mine)
The three central arguments used against plastic grocery bags are that plastic bags pollute the air and water, and pose a significant litter problem, clogging our lakes, rivers, and oceans.

Claim: Plastic bags pollute the air

According to most plastic bag critics, it takes roughly 12 million barrels of oil to produce the 100 billion plastic bags used in the US each year (Sierra Club, undated). 

Environmental activists note the production and decomposition of plastic bags emits greenhouse gases and other pollutants at every stage of a plastic bag’s life (New York Times, 2007). This, however, tells less than half of the story, as most analyses of bag impacts don’t consider the costs and benefits of plastic bags relative to alternatives. 

A study released in 2011 by the Environmental Agency of England helps put environmental impact claims in perspective. In Evidence: Life Cycle Assessment of Supermarket Carrier Bags, researchers offer a “cradle-to-grave” review of seven different types of grocery store bags: conventional lightweight plastic bags; plastic bags treated with a chemical to speed its degradation; a lightweight bag made from a biodegradable starch-polyester blend; a regular paper bag; a heavy-duty “bag for life” made from low-density polyethylene (LDPE); a heavier duty polypropylene bag; and a cotton bag (Edwards and Meyhoff Fry, 2011).
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The researchers compared the environmental damage done by the bags using a number of indicators of environmental impact, including global warming potential, acidification, eutrophication, human toxicity, and others. They found that the conventional plastic bag had the lowest environmental impact of the lightweight bags in eight out of nine impact categories and that biodegradable plastic bags had even larger environmental impacts than the regular kind. Paper bags performed poorly on the environmental impact tests, and the study found that they must also be used four or more times to match the global warming potential of the plastic bags. In sum, cotton bags were found to have a greater environmental impact than the conventional bags in seven of nine categories, even when  used 173 times—the number of times needed for its global warming potential to be on par with that of a plastic bag

Claim: Plastic bags pollute the water

Another frequently recited argument in favour of banning plastic is that we face a crisis of plastic-encrusted waterways. Environmental groups paint horrific pictures of plastic pollution like the Great Pacific Garbage Patch, which purportedly spans twice the size of Texas (Oceanic Defense,  undated). Though it’s certainly true that plastic bags can be harmful to all things aquatic, it’s important, again, to put such claims in perspective. As assistant professor of Oceanography Angelicque White reports, the claims about the size of the Great Pacific Garbage Patch are simply wrong (2011). She explains, “The amount of plastic out there isn’t trivial, but using the highest concentrations ever reported by scientists produces a patch that is a small fraction of the state of Texas, not twice the size.” Moreover, “there is no doubt that the amount of plastics in the world’s oceans is troubling, but this kind of exaggeration undermines the credibility of scientists. We have data that allow us to make reasonable estimates; we don’t need the hyperbole.” And the contribution of plastic grocery bags to ocean plastic pollution is relatively small: environmental group Grow NYC estimates that only “7.5% of our waste stream consists of plastic film such as supermarket bags” (2012).

Dangers of alternatives

Alternatives, such as trendy cloth bags, pose a danger. A closer look proves cloth bags are not only less environmentally safe as described above, but they pose their own risks to human health. In June 2010, Charles Gerba and colleagues at the University of Arizona and Loma Linda University released a study on contamination of reusable bags. As they explain in Assessment of the Potential for Cross Contamination of Food Products by Reusable Shopping Bags:

“Large numbers of bacteria were found in almost all bags and coliform bacteria in half. Escherichia coli were identified in 12% of the bags and a wide range of enteric bacteria, including several opportunistic pathogens. When meat juices were added to bags and stored in the trunks of cars for two hours, the number of bacteria increased 10-fold indicating the potential for bacterial growth in the bags.”

While some critics dismissed the study due to its partial funding by the American Chemistry Council, real world examples corroborate Gerbera’s results (Huffington Post, 2012). In October 2010, for example, a teenaged soccer player in Oregon fell mysteriously ill, kicking off a nasty strain of norovirus that quickly spread to her teammates and left scientists puzzled. Epidemiologists ultimately uncovered the bizarre yet treacherous culprit: a contaminated cloth grocery bag from the soccer player’s hotel room. An NBC report explains, “The girl had been very ill in the hotel bathroom, spreading an aerosol of norovirus that landed everywhere, including on the reusable grocery bag hanging in the room. When scientists checked the bag, it tested positive for the bug, even two weeks later” (Aleccia, 2012)

To avoid such dangers, epidemiologist Kimberly K. Repp (whose report on the mystery above appears in the Journal of Infectious Diseases) rightly advises that, “we wash our clothes when they’re dirty; we should wash our bags too.” Unfortunately, however Gerbera et al found that “reusable bags are seldom if ever washed and often used for multiple purposes” (2012).

Economic Impacts

Finally, many proponents of the plastic bag ban spend the majority of their time on environmental benefits, and offer little substantive analysis as to the economic impacts of a plastic bag ban or tax. As it turns out, the economic case for plastic bag bans and /or taxes is less than airtight. A report released in January 2011 by the Suffolk University’s Beacon Hill Institute conjectures that Washington, DC’s bag tax, by making purchases more inconvenient, will lead consumers to reduce how much they buy in the District, which “will eliminate a net of 101 local jobs. The job losses will cause annual wages to fall by $18 per worker and aggregate real disposable income to fall by $5.64 million. The wage and income losses will combine to lower income tax collections.” A recent study from the National Center for Policy Analysis also found that plastic bags cost jobs:

“The NCPA surveyed store managers in Los Angeles County where a ban of thin-film bags took effect in July 2011, to determine the ban’s impact on revenues and employment. Over a one year period before and after the ban, stores that fell under the bag ban experienced a 10 percent reduction in  employment, while employment in stores outside of the ban slightly increased (2012)."

Conclusion

The panic surrounding plastic grocery bags is largely unfounded. Despite continued demonization of plastic bags, the  evidence shows that they’re less likely to be contaminated, typically save more energy than paper or cloth alternatives, and are less hazardous to marine life than is commonly conjectured 
Populist environmental politics has mostly been about misanthropic and atavistic social controls, backed by specious theories, which yearns to bring back society to the medieval age. 

The unseen factor has been the transfer of resources or the promotion vested interest groups, using the environment as cover, such as taxpayer funded green energy industry which has continued to bleed taxpayers dry in the US and in the Philippines, green lobby and the logging interests.

Saturday, October 22, 2011

Video: Political Economy Basics "My Friend Sarah"

From the winner of the 2009 Fraser Institute Video Contest (hat tip David Henderson)

Wednesday, September 21, 2011

Declining World Economic Freedom (includes the Philippines)

The Cato Institute and the Fraser Institute has just published the 2011 Economic Freedom of the World with bleak results.

From Cato’s Ian Vasquez (bold emphasis mine)

After having risen for decades, global economic freedom has fallen for a second year in a row. That’s according to Economic Freedom of the World: 2011 Annual Report co-published today with the Fraser Institute. The average global economic freedom score rose from 5.53 (out of 10) in 1980 to 6.74 in 2007 and has fallen to 6.64 in 2009, the last year for which data is available.

As the graph below shows, the United States has had one of the largest declines in the past decade. It now ranks in 10th place compared to 3rd in 2000, largely due to higher government spending and lower ratings on “rule of law” measures.

The report documents the strong, positive relationship between economic freedom and a range of indicators of standard of living including wealth, economic growth, longer life spans, better health care, lower poverty, civil and political liberties, and so on.

Economic freedom is central to human progress. As the response of activist governments to financial and ongoing debt crises fails to address underlying issues responsible for low growth and high unemployment, this report is an important empirical reminder about the wide-ranging consequences of politics or markets in determining the use of resources.

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More from the study

Economic freedom has suffered another setback

• The chain-linked summary index permits comparisons over time. The average economic freedom score rose from 5.53 (out of 10) in 1980 to 6.74 in 2007, but fell back to 6.67 in 2008, and to 6.64 in 2009, the most recent year for which data are available.

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• In this year’s index, Hong Kong retains the highest rating for economic freedom, 9.01 out of 10. The other nations among the top 10 are: Singapore (8.68); New Zealand (8.20); Switzerland (8.03); Australia (7.98); Canada (7.81); Chile (7.77); United Kingdom (7.71); Mauritius (7.67); and the United States (7.60).

• The rankings (and scores) of other large economies are Germany, 21 (7.45); Japan, 22 (7.44); France, 42 (7.16); Italy, 70 (6.81); Mexico, 75 (6.74); Russia, 81 (6.55); China, 92 (6.43); India, 94 (6.40); and Brazil, 102 (6.19).

• The bottom 10 nations are: Zimbabwe (4.08); Myanmar (4.16); Venezuela (4.28); Angola (4.76); Democratic Republic of Congo (4.84); Central African Republic (4.88); Guinea-Bissau (5.03); Republic of Congo (5.04); Burundi (5.12); and Chad (5.32).

The world’s largest economy, the United States, has suffered one of the largest declines in economic freedom over the last 10 years, pushing it into tenth place. Much of this decline is a result of higher government spending and borrowing and lower scores for the legal structure and property rights components. Over the longer term, the summary chainlinked ratings of Venezuela, Zimbabwe, United States, and Malaysia fell by eight-tenths of a point or more between 1990 and 2009, causing their rankings to slip.

The chain-linked summary ratings of Uganda, Zambia, Nicaragua, Albania, and Peru have increased by three or more points since 1990. The summary ratings of eight other countries—Bulgaria, Poland, El Salvador, Romania, Ghana, Nigeria, Hungary, and Guinea-Bissau—increased by between two and three points during this same period.

The spate of government interventions which can be seen via “higher government spending and borrowing” and various forms of legislative and monetary policy interventions, especially in the developed world (meant to save the highly privileged banking sector) has definitely been weakening the underlying trends of global economic freedom.

Distortion of price signals in the marketplace has been one big symptom.

All these will continue for as long as politics is the preferred avenue to solve current social predicaments.

Nevertheless, it’s hardly been good news for the Philippines…

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…whose Economic Freedom continues to decline since 2005

Monday, May 25, 2009

Mining Friendly Nations

Interesting charts from Fraser Institute depicting the pecking order of Mining Friendly nations.
Notice that the Philippines ranks near the bottom of the chart, despite the thrust to promote the industry.

Based on mineral potential relative to current regulations and land use restrictions, the Philippines was rated nearly 60%, which means we are far from harnessing our fullest potentials.

However, assuming no land use restrictions and assuming industry “best practices”, the Philippines leaps to the higher echelons. This implies regulatory obstacles have been a key deterrent to the industry's Growth.

The following are anonymous comments by local mining participants on the industry (bold emphasis mine).

``Philippines [has] unclear policies, extremely high level of official corruption, a banana-republic approach to governmental administration, the civil war in the south and fighting elsewhere between government forces and the NPA [New People’s Army] insurgency."—Exploration company, company vice-president

``In Philippines, the law is promoting the development of the mining industry but at the same time strict on environmental and social responsibilities."—Producer company with more than US$50M revenue, company president

All said, the Philippines needs to foster a mining friendly investment environment by easing up on regulations to encourage more growth in the industry.