Plastic Bags - COAG Standing Council on Environment and Water

• replacement bag sales – affecting consumers and manufacturers
• capital costs – affecting retailers who may need to install new equipment and processes.
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Comment on assumptions used for modelling
The ACG assessment covers the cost of replacing both HDPE and LDPE bags.
The options modeled in this consultation RIS assume nationally consistent action. There is, of
course, a possibility that some jurisdictions may choose different policy responses to the problem.
Additional modelling would be required to show the impacts of different policy responses in
different states, such as the impact on retailers operating across state boundaries (across different
jurisdictions). If this were to occur, costs to governments and retailers would be likely to be
significantly higher. Further industry behavioural assumptions are listed on page 56 of the ACG
May 2006 report.
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7.2.2 ACG report to DEH, ANRA proposal on plastic bag management: supplementary
economic analysis to the EPHC report
In late May 2006, ANRA proposed a new retailer voluntary code of practice for plastic carry bags.
This was subjected to cost-benefit analysis by ACG, to the extent possible in the short time
available.
ACG’s analysis of the ANRA proposal drew on and extended the earlier EPHC study results.
While it did not use the MMRF-Green model to compute economic impacts, outputs from the
EPHC exercise allowed estimates for supplementary options to be developed based on a
combination of scaling and interpolation.
In order to facilitate comparison between the supplementary analysis and the original analysis,
consistent methodologies, population growth and composition estimates, and behavioural
assumptions consistent with the earlier work, were used. Aggregated and ‘high-level’ numbers
(e.g. gross domestic product (GDP) impacts, environmental benefits, NPVs etc.) are most robust,
while the initial, sectoral impacts (to retailers, households, and government) are provided for
illustration.
More information about the methodology used in the supplementary analysis can be found in the
ACG report to DEH, The ANRA proposal on plastic bag management: supplementary economic analysis
to the EPHC Report, provided as an appendix to this RIS.
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7.3. Litter focused options
This consultation RIS considers two approaches for directly targeting plastic bag litter: a broader
litter management approach, elements of which are described below (Options A to D); and an
Advance Disposal Fee (Option E).
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7.3.1 General litter abatement to manage plastic bag litter
This section aims to present general options for consideration and comment as part of the
consultation RIS. A specific litter strategy has not been presented and costed at this stage as litter
abatement is a broad subject with many different facets. Local, state and territory governments,
industry and not-for-profit organisations already spend significant funds on litter abatement
Consultation Regulatory Impact Statement: Investigation of options to reduce the environmental impact of plastic bags January 2007 46