The End of Plastic Bag Taxes: Are We Headed for Environmental Disaster?

This article may contain personal opinions. The writer is responsible for any opinions expressed in the article. These opinions are not reflective of LundaEkonomerna, which maintains a politically neutral stance.

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We constantly hear about the harms of plastic: no plastic straws, no plastic cups and absolutely no plastic bags. When the plastic bag tax was introduced in May 2020, prices more than doubled and people quickly switched to paper or brought their own tote bags. It became the new normal – a small change that felt like it made a difference. The tax aimed to meet the European Union’s goal of reducing plastic bag use and it worked. But now, the Swedish government claims the tax no longer serves a purpose since plastic bag consumption has dropped significantly. As a result, the plastic bag tax was repealed on November 1st this year. Personally, I can’t help but wonder – what will the outcome of this decision be? 

In 2019, Sweden had a consumption of 74 bags per person and the goal the European Union had set back then was 90 bags per person per year. The decision to introduce plastic bag taxes in 2020 was controversial, with the price rising from 3 to 7 SEK. However, many people have since turned to alternatives to plastic bags. Plastic bag consumption dropped significantly, from 55 bags per person in 2020 to just 17 bags per person in 2023. By 2025, the target is set at 40 bags per person annually – a threshold we have consistently stayed under since the introduction of the plastic bag tax. Nevertheless, many researchers now believe that consumption will rise again and therefore worry that we won’t reach the goal by 2025. Increasing consumption could lead to million-kronor fines, as failing to meet this agreed-upon goal might compel the European Union to impose penalties on the Swedish government.

Bar chart of plastic bag consumption in Sweden (Data from Naturvårdsverket)

Research has looked into what happens in similar cases. There is a comparable example in South Africa, where they have gone through a similar journey to what we have experienced in Sweden. Initially, plastic bags were free and then a substantial tax was introduced. Usage plummeted but after heavy criticism, the tax was reduced. This led to a noticeable increase in plastic bag use, especially among middle-income earners. Although usage didn’t return to previous levels, the difference was still significant. This could indicate a risk that Sweden might return to higher levels of plastic bag consumption.

Lowering plastic bag consumption is one approach to combating plastic pollution, aligning with the European Union’s goals​​. In 2023, we only used 17 bags per person which might seem like a small number but that adds up to about 176 million plastic bags in a single year. These plastic bags often end up as litter, polluting our environment and waterways. Plastic in nature poses serious risks to animals, ecosystems and human health. When plastic enters our environment and oceans, it breaks down into tiny fragments such as microplastics and nanoplastics. They can impact ecosystems and individual organisms alike. Researchers have even found microplastics in human and animal bloodstreams, breast milk, testicular tissue and brain matter. It’s estimated that our oceans may now contain as much as 199 million tons of plastic, with more accumulating each day.

In Sweden, plastic litter remains a concern. In a 2020 national litter survey by Håll Sverige Rent, nearly 50 000 plastic bags were found during a single summer week in the town centers of 290 Swedish urban areas. This included 25 200 plastic bags from grocery and clothing stores as well as 21 300 smaller plastic bags such as those used for fruits and vegetables. According to another survey done by Håll Sverige Rent, 35 percent of Swedish citizens say they consider plastic bags to be an environmental problem and more than half, 51 percent believe it is important to reduce their usage. Regardless of the plastic bag tax being repealed, efforts will be needed to keep plastic consumption low. This includes continued education for consumers on reusing and recycling their plastic bags and above all, not discarding them in nature.

Others believe that removing the plastic bag tax could bring positive outcomes. The tax impacted companies producing eco-friendlier plastic bags made from recycled materials just as much as it did those making conventional plastic bags. These more sustainable plastic bags, often produced from sugarcane or cornstarch are typically reused many times or used as garbage bags before being thrown away. Due to the tax, however, many of these companies faced production cuts and layoffs. Some argue that these recycled plastic bags could be more climate-friendly than paper bags which are frequently imported over long distances. Following the tax, many consumers shifted toward paper bags or began purchasing imported waste bags often manufactured with fossil fuels. In comparison, plastic bags produced from recycled materials could present a more sustainable alternative.

To summarize, Sweden repealed its plastic bag tax on November 1st, after achieving a significant reduction in plastic bag use – from 55 bags per person in 2020 to 17 in 2023, well below the European Union’s 2025 goal of 40 bags. The tax encouraged consumers to switch to reusable alternatives, contributing to reduced plastic pollution. However, concerns remain that usage could rise without the tax, increasing plastic waste. On the other hand, some argue that lifting the tax could promote the production of bags made from recycled materials. Even with the reduced cost, Swedish citizens may not return to higher plastic bag usage due to lasting shifts in consumer behavior. The outcome of this policy change remains to be seen.

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  • The End of Plastic Bag Taxes: Are We Headed for Environmental Disaster?

    This article may contain personal opinions. The writer is responsible for any opinions expressed in the article. These opinions are not reflective of LundaEkonomerna, which maintains a politically neutral stance.