Influences of various pricing points: an experimental study of plastic bags in Johannesburg, South Africa
Policymakers have little experience regarding designing the right levels of pricing for plastic bags. The ineffectiveness of charging for bags, in countries such as South Africa, makes it imperative that we map the demand curve. Getting the charge “right” depends on the size of the externality. Charging for bags is therefore an effective intervention to encourage consumers to carry their own bags to the stores. We employ a contingent behaviour (CB) dataset necessary to estimate the charge level that is likely to lead to a reduction in bag use over time.