Abstract:
This research explores in a structured way, the continuing effects of legislative
measures such as bans and taxes on single-use plastic bags on the ecological balance of
different nations as measured by Ecological deficit or Reserve. Using Random Effects,
Fixed Effects and Driscoll and Kraay we analysed a panel data set consisting of 208
countries to discover if such policies play a part in an ecological reserve or they are
unable to oppose an ecological deficit. The study will use a mix of confounding
variables to make sure a sturdy examination of any impact of the policy.
Econometric models, studied the subtle linkages between the effectiveness of the policy
and the country’s beginning ecological status, differentiating between countries with
reserves and those with underlying ecological deficit. Therefore, this study is composed
to give insightful information about the efficacy of environmental regulations and
sustainable practices in plastic waste management.
In all our models we found that a ban imposed in a prior year helps to maintain the
ecological balance of the region. The result is solidified as there is a low variation
between and within items and once implemented taxes have shown not be fluctuating
much around its mean value over time.
The impact of taxes on ecological balance shows expected result but is statistically
insignificant. This is reasonable as taxes were rarely implemented across the dataset,
indicated by its low mean value. Also the estimates are indicative of low variability
between and within different units.
Interesting results are provided by Driscoll and Kraay estimation pertinent to the
combined effect of bans and taxes on the ecological health of a region. This means that
policy makers may consider a policy which incorporates multiple measures towards
producing the desired result. All the more policy makers should rethink taxes as a
standalone policy in an attempt to curtail environmental pollution.
