Question

Think of an environmental problem (e.g., climate change, acid rain, agricultural chemical run-offs, water pollution, air pollution, etc.) that seems interesting or urgent to you.

a. Briefly describe this problem. What causes it? What are the potential short-term and long-term impacts?

b. Suppose that you are a policy maker and you are in charge of implementing a policy dealing with this problem.

i. Suppose that you propose a standard. Briefly explain how this policy would work and how it would deal with the environmental issue. What would be the positive attributes of this policy? What would be negative attributes, or drawbacks?

ii. Suppose that you propose an emission tax. Briefly explain how this policy would work and how it would deal with the environmental issue. What would be the positive attributes of this policy? What would be negative attributes, or drawbacks?

iii. Suppose that you propose a Cap-and-Trade system. Briefly explain how this policy would work and how it would deal with the environmental issue. What would be the positive attributes of this policy? What would be negative attributes, or drawbacks?

Answer 1

Let us consider pollution generated from non-biodegradable plastics to be the most urgent and widespread problem facing humanity.

Description of the Problem.

Around the world, waste generation rates are rising. With rapid population growth and urbanization, annual waste generation is expected to increase by 70% from 2016 levels to 2050. Plastics are especially problematic. If not collected and managed properly, they will contaminate and affect waterways and ecosystems for hundreds, if not thousands, of years.

Only 14% of plastic packaging is collected for recycling globally. While more than one-third of waste in high-income countries is recovered through recycling and composting, only 4 percent of waste in low-income countries is recycled. [Source-World Bank Report]

Cause of the Problem.

As is the practice with packaged foods, once bought by the end consumer, the contents of the packet are transferred into a container and the packaging material is thrown away. The multi-layer plastic (MLP) that the packaging is made of currently ends up in a landfill since the technology to recycle is not fully developed. As a result, most of it goes to landfills and stays there as such for years.

Short Term and Long Term Impact of the Problem.

The Plastic material stored in Landfills impacts the environment through the emission of different gases, which in turn creates health-related issues.

Plastic (e.g. Nano Plastic) has also been known to seep into the landmass and result in the contamination of food crops and groundwater which may harm the consumer.

Most Plastic wastes end up in the ocean and create severe harm to marine life. It has been observed that according to the World Bank report. By 2050 oceans could contain more plastics than fish (by weight). [Source-World Bank Report]

Policy Maker perspective

1. Propose a Standard

The foremost requirement to propose a standard for the use of plastic is to identify the types of plastic waste, their relative contribution to the overall waste and their compatibility with the relevant recycling methods.

In the case of plastic waste, we see that the most prevalent plastic waste is MLP (multi-layer plastic). MLP is a combination of layers like MET, PET or Poly stuck together using an adhesive and printed on the top with ink for branding and aesthetics. It is difficult to segregate the layers, adhesive, and ink without which it is difficult to process.

In comparison to this plastic packaging made from a single plastic (e.g. PE) can be sent to recyclers and hence can be kept out of landfills or oceans.

The implementation of this standard needs the coordination of the Govt. and the corporations alike. This has to become an essential part of companies’ sustainability initiatives.

Positive attributes

The use of the alternate plastic standard for packaging could provide the same print quality and other functional requirements as the PET being used in the existing packs. The newly developed recyclable pack could be comparable in aesthetics and shelf life to the existing packs. Since the laminate is made of the same polymer (PE), as opposed to two different substrates (PET-PE), the recycling agencies must essentially deal with only one material. The material can, therefore, be re-engineered without the challenge of working with differing temperatures. Thus, the single polymer structure makes the pack easily recyclable.

Negative attributes

1. Compatibility issues with existing machines- Making new packaging with new material has compatibility issues with the existing machines and might create production issues, which may lead to hindrance in the successful scale-up and cost overruns.
2. Raw Material Availability- Organizations would have to ensure that the necessary raw material at the right price is available to fulfill customer demand.
3. Collection and sorting challenges- Even if the pack is recyclable, the key success factor is the collection and sorting of used packaging material disposed of by the consumer. The respective municipal corporations across geographies should have mechanisms to collect the waste, sort the packs from other nonrecyclable material and handover to the respective agencies that can recycle the material.

2. Propose an Emission Tax

The absence of a reliable alternative a taxation approach can be used which not only would coax companies for lesser production of the polluting plastic but also will encourage manufacturers to invest and work on alternatives.

The emission tax can be applied to the companies according to the amount of waste they produce. Companies can also be categorized based on the initiatives implemented to reduce the amount of waste generation or sustainable efforts for the recycling of the waste.

Another way to implement the emission tax is to earmark a fixed amount on each pouch of MLP sold. The Money generated can be put into an escrow account to be used later to create a recycling infrastructure.

Positive attributes.

1. Less production of plastic by the manufactures
2. Encouragement to deploy recycling initiatives in the producers.
3. Investments in the necessary R& D of new alternatives.
4. Obtain necessary funding to create the recycling infrastructure.

Negative attributes.

1. Increase in price of the consumer goods which may result in lower consumption and financial harm to the companies.
2. By paying carbon tax companies may think that they are fulfilling their environmental obligations by paying the money and might not be inclined to take concrete action to reduce waste generation.

3. Propose a Cap & Trade System

Cap and trade let the market find the cheapest way to cut emissions. (VP, Global Climate)

In a Cap and Trade system, the Cap is the maximum amount of the emissions/waste that an organization can generate. It is mandated by the relevant govt policy.

The trade parts of this system reward the organization which reduces its waste generation below limit can help the other organization by selling a part of their limit.

Positive attributes of the policy.

1. The trading process can lead to faster cuts in pollution
2. Government revenues increase with cap and trade.
3. Cap and trade encourage aggressive climate change goals.

Negative attributes of the policy.

1. Cap and trade does not encourage reductions beyond target levels
2. The government ultimately sets the caps on emission which can lead to a bias.
3. Trade systems will work only if the value cost is effective.