The Economics of Plastics
Rethinking Plastic
How economics can help reduce plastic pollution through pricing, design, collection and reuse, and a recap of the module.
Plastic isn’t going away, but its pollution can be reduced.
Policy mix
- Price plastic’s hidden costs through taxes and deposits.
- EPR to fund collection and recycling.
- Bans on the most problematic items.
- Design for recyclability.
- Reuse and refill systems.
- Waste collection infrastructure.
Module recap
- Plastic production soared from 1950.
- Plastic is cheap because pollution costs aren’t priced.
- India banned single-use items in 2022.
- EPR certificates created a market, with fraud risks.
- PET recycles well; films don’t.
- Packaging reduces food waste; trade-offs matter.
- Multilayer packets are hard to recycle.
- Ocean plastic comes mostly from land via rivers.
- Microplastics are found in our bodies.
- Global treaty talks failed by 2025.
- Alternatives have trade-offs; reuse often wins.
The deposit bottle
A state introduces a small deposit on drink bottles, refunded on return. Collection rates jump as people return bottles for cash.
Thinking one policy can solve plastic pollution
A mix of pricing, design, collection and reuse is needed.
Key takeaways
- Plastic pollution needs a policy mix.
- Pricing, EPR, bans and design all help.
- Collection infrastructure is key.
- Reuse reduces waste most.
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