Why plastic bag bans triggered such a huge reaction

Gary Mortimer, Queensland University of Technology and Rebekah Russell-Bennett, Queensland University of Technology

Woolworths’ and Coles’ bans on plastic bags have been applauded by environmental groups, but were reportedly met with abuse and assault and claims of profiteering. Even comedians saw value in the theatre of the bag ban.

This reaction is due to supermarkets breaching their “psychological contract” with customers. When both major supermarkets appeared to back flip in the face of irate customers it only compounded the problem”.

Unlike written legal contracts, psychological contracts are a set of “unwritten rules” or “expectations” exchanged between the parties in a transaction. This can be between an employee and employer, or a customer and a retailer.

These understandings are often tacit or implicit. They tend to be invisible, assumed, unspoken, informal or at best only partially vocalised.

The pre-ban psychological contract between supermarket and shopper was something like “I’ll shop with you and, in exchange, you’ll pack my purchases into a free plastic bag.”

There was an implicit financial exchange between parties. Shoppers spent money on groceries and the supermarket paid for providing a plastic bag.

With the bag ban the psychological contract changed: “I’ll shop with you and give up a plastic bag, you’ll also give up plastic in the store in other areas, and the environment will benefit.”

Supermarkets justified phasing out lightweight plastic bags with the idea of a corporate social responsibility strategy. Customers might have been glad to forgo single-use plastic bans to support a greener future, but this is where the problem occurred.

Shoppers began to realise that supermarkets were saving money (by no longer giving away bags for nothing), while they themselves incurred a cost (paying 15 cents or more, depending on the type of re-usable bag).

The supermarkets had not kept up their end of the psychological contract by reducing the use of plastic in the store, particularly in packaging. The social media comments largely reflect this.

When there is a psychological contract breach, people can engage in revenge and retaliation.

This can range from mild, such as venting on social media, to acts of sabotage like altering floor stock and stealing shopping baskets.

Compounding factors

A couple of other factors have compounded the perceived breach of contract.

Unlike smaller states and territories (South Australia, Tasmania, Northern Territory and the ACT) where state legislation has banned single-use plastic bags by all retailers, this was a retailer-imposed national ban.

Shoppers in these smaller states quickly became accustomed to not having free bags, as these were not available anywhere.

By simply backflipping soon after implementing the policy, the supermarkets also prompted shoppers to question their intentions and integrity.

While shoppers may have at first accepted the rationale for the ban, extended free bag periods sent the message that the supermarkets are not that serious about banning plastic bags for environmental reasons.

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While Woolworths has said it will channel “money made” from selling its “Bag for Good” scheme into a youth environmental scheme, customers also rightly question the cost savings and revenues generated.

Removing a single-use plastic bag is a positive first step, but it is only the beginning. Customers still walk in to supermarkets today and see many varieties of food wrapped in plastic, and they themselves place loose fruit and vegetables into plastic bags.

As a result of media coverage, customers are now more aware and sensitive of plastics throughout dry grocery departments. They see more and more unnecessary plastic packaging, like dry pasta in a box with a clear plastic window.

Fixing the plastic bag ban

There is certainly enough evidence that removing single-use bags leads to positive environmental outcomes. But a national, uniform approach is needed, supported by consumer awareness and education programs.

While many state and territory governments have legislated plastic bag bans, others have held out. The Victorian government last year announced plans to ban single-use plastic bags, but despite widespread consumer support, it is yet to come into effect.

Supermarkets need to be open about the financial aspects of plastic bags, both costs and revenues.

Consumers may understand the procurement and logistics costs of the replacement plastic bag options will be higher – because the bags are thicker and heavier, and it takes extra time to pack different-sized bag options.

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The distribution of net profits (not gross profits) from the sale of all re-usable bag options should be channelled into sustainability programs, research grants and education schemes. Programs need to be benchmarked, measured and publicly announced.

Shoppers will be more accepting of change if they can comprehend how their small sacrifice (say 15 cents) is helping the environment.

Shoppers also have an important role to play in the scheme of things. While it will take some time to break old habits, responsibility rests with shoppers to remember to bring a bag. If they forget, they simply need to buy another one.

Ultimately, the psychological contract needs to once again be aligned and in balance. To do this governments, retailers and consumers need to work together to solve this important environmental issue.

Gary Mortimer, Associate Professor in Marketing and International Business, Queensland University of Technology and Rebekah Russell-Bennett, Social Marketing Professor, School of Advertising, Marketing and Public Relations, Queensland University of Technology

This article was originally published on The Conversation. Read the original article.

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How to break up with plastics (using behavioural science)

Single-use plastics are convenient, but it’s time to phase them out.
Photo by Sander Wehkamp/Unsplash

Kim Borg, Monash University

Australia is responsible for over 13 thousand tonnes of plastic litter per year. At the end of June 2018, the Australian government released an inquiry report on the waste and recycling industry in Australia. One of the recommendations was that we should phase out petroleum-based single-use plastics by 2023.

This means a real social shift, because the convenient plastic products that we use once and throw away are ubiquitous in Australia.

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Bans, as Coles and Woolworths recently adopted for plastic bags, are one option – but are not suitable for every situation. They can also feel like an imposition, which can inspire backlash if the community is not on board. Behavioural science can offer a path to curb our plastic use.

Technology alone is not the solution

First off, plastic is not evil: it’s flexible, durable, waterproof and cheap. The issue is the way we dispose of it. Because plastic is so versatile it has been adopted across a range of single-use “throw away” consumer products.

Many people are working on technological solutions to our plastic problems. These range from better recycling techniques and biodegradable “plastics” made from algae or starch, to (my favourite) using the wax moth caterpillar or “mutant bacteria” to consume plastic waste.

But these options are slow and expensive. They can also have other environmental impacts such as greenhouse gas emissions and resource consumption.

There are lots of reusable alternatives to many single-use products. The challenge is getting people to use them.

Behavioural science to the rescue

My research involves applying insights from various disciplines (like economics, psychology, sociology or communication) to understand how governments and businesses can encourage people to change their behaviour for environmental, social and economic benefits.

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Plastic-free campaigns don’t have to shock or shame. Shoppers are already on board

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Research has found that simply providing information through awareness campaigns is unlikely to change behaviour. What media attention and campaigning can do is increase the public visibility of an issue. This can indirectly influence our behaviour by making us more open to other interventions and by signalling social norms – the unwritten rules of acceptable behaviour.

Successful behaviour change campaigns must empower individuals. We should be left feeling capable of changing, that changing our behaviour will impact the problem, and that we are not alone. One positive example is modelling sustainable behaviours, like using KeepCups or beeswax wraps, in popular TV shows.

Once we’re aware of an issue, we may need a little help to move from intention to action. One strategy for providing this push is a small financial disincentive, like Ireland’s famous “plastax” on single-use plastic bags. Many cafés also offer discount coffees to reward bringing reusable cups.

We can also encourage retailers to “change the default”. Japan increased the refusal rate of plastic bags to 40% after six months of cashiers simply asking people if they wanted a bag.

This approach could be used for other products too. For example, imagine your drink not coming with a straw unless you specifically ask for it. This would cut down on waste, while also avoiding the unintended consequences of banning a product that is important for people with a disability.

Given that there is already strong support for reducing our reliance on single-use plastics, another simple solution would be to provide prompts in key locations, like carparks and workplaces, to remind people to bring their reusables.

While we may have the best of intentions to carry reusables, our old habits can often get in the way. Defaults and prompts can help to bring our good intentions in line with our actual behaviours.

Consumer demand also encourages manufacturers to make more convenient reusable options, like collapsible coffee cups and metal keychain straws. Businesses can also make reusables more accessible by introducing product-sharing schemes like the Freiburg Cup in Germany or Boomerang Bags in Australia.

No ‘one size fits all’ solution

Different situations need different solutions. Product sharing or reusable coffee cups might work in an office or café where the same customers return regularly, but would be impractical at a gallery or museum where customers vary each day.

For societal-level change multiple approaches are more effective than any one initiative alone. For example, if we wanted to phase out plastic cutlery nationally, we could start with an awareness campaign that encourages people to carry reusable alternatives. Then, once the community is on board, implement a small fee with some reminder prompts, and finally move to a ban once the majority have already changed their behaviour.

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The key to successfully phasing out our reliance on single-use plastic products is to change the norm. The more we talk about the problem and the solutions, the more businesses will seek out and offer alternatives, and the more likely we are to mobilise together.

Kim Borg, Doctoral Candidate & Research Officer at BehaviourWorks Australia, Monash Sustainable Development Institute, Monash University

This article was originally published on The Conversation. Read the original article.

Policy overload: why the ACCC says household solar subsidies should be abolished

Lucy Percival, Grattan Institute

The keenly awaited report on retail electricity prices, released this week by the Australian Competition and Consumer Commission (ACCC), has made some controversial recommendations – not least the call to wind up the scheme that offers incentives for household solar nearly ten years early.

The report recommends that the small-scale renewable energy scheme (SRES) should be abolished by 2021. It also calls on state governments to fund solar feed-in tariffs through their budgets, rather than through consumers’ energy bills.

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The ACCC has concluded that offering subsidies for household solar was a well-intentioned but ultimately misguided policy. Solar schemes were too generous, unfairly disadvantaged lower-income households, and failed to adjust to the changing economics of household solar.

The lesson for policy-makers is that good policy must keep costs down as Australia navigates the transition to a low-emissions economy in the future. Failure to do this risks losing the support of consumers and voters.

Runaway rebates

Rooftop solar schemes were much more popular than anticipated. This might sound like the sign of a good policy. But in reality it was more like designing a car with an accelerator but no brakes.

Generous feed-in tariffs and falling small-scale solar installation costs encouraged more households to install solar than were initially expected. Premium feed-in tariffs were well above what generators were paid for their electricity production. Historically solar feed-in tariffs paid households were between 16c and 60c per kilowatt-hour, while wholesale prices were less than 5c per kWh.

At the same time, installation costs for solar panels fell from around A$18,000 for a 1.5kW system in 2007, to around A$5,000 for a 3kW system today. The SRES subsidy for solar installations was not linked to the actual installation cost or the cost above the break-even price. So the SRES became relatively more generous as installation costs fell.

As solar penetration increased, and network costs rose to cover this, it became increasingly attractive for households to install solar panels. In Queensland, the initial cost forecast for the solar bonus scheme was A$15 million. Actual payments were more than 20 times that in 2014-15, at A$319 million. And the environmental benefits weren’t big enough to justify that cost, as other policies have reduced emissions at a lower cost. The large-scale renewable energy target reduced emissions for A$32 per tonne, while household solar panels reduced emissions at a cost of more than A$175 per tonne.

In most states, premium feed-in tariffs and rooftop solar subsidies are funded through higher bills for all consumers. Everyone pays the costs, yet only those with panels receive the benefits. That means the costs fall disproportionately on lower-income households and those who rent rather than own their home.

The ACCC report recommends the SRES be wound up nearly 10 years ahead of schedule, because the subsidies are no longer financially justifiable. This would maintain the support for current solar installations but remove subsidies for new solar installations from 2021.

The report also recommends removing the direct costs of feed-in tariffs from electricity bills. Instead, state governments should directly cover the costs of premium feed-in tariffs. The Queensland government has already made this move.

Of course, governments still have to find the money from elsewhere in their revenues, which means taxpayers are still footing the bill. But the new arrangement would at least remove the current unfair burden on households without solar.

Fixing the mistakes

How can governments avoid making similar policy mistakes in the future? The ACCC’s recommendations, together with the proposed National Energy Guarantee (NEG), provide a solid foundation for Australia’s future energy policy.

First, the future is hard to predict, so good policy adapts to change. The NEG provides a flexible framework to direct energy policy towards a low-emission, high-reliability, low-cost future. Reviewing and adjusting the emissions target along the way will enable Australia’s energy policy to respond to new technologies and shifting cost structures, while maintaining consistency with economy-wide targets.

Second, it is hard to pick winners, so good policy creates clear market signals. The NEG provides the energy industry with clear expectations, but is technology-agnostic and minimises government intervention. This encourages the market to find the most cost-effective way to reduce emissions and ensure reliability.

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The ACCC report also recommends simplifying retail electricity offers, which would make it easier for consumers to find a good deal, and in turn making the market more competitive.

Politicians have an opportunity to draw a line in the sand on narrow, technology-specific policies such the SRES. An integrated energy and climate policy should focus on good design, and then step back and let the market pick the winners.

Lucy Percival, Associate, Grattan Institute

This article was originally published on The Conversation. Read the original article.

New Zealand’s zero carbon bill: much ado about methane

New Zealand is considering whether or not agricultural greenhouse gases should be considered as part of the country’s transition to a low-emission economy.
from http://www.shutterstock.com, CC BY-SA

Robert McLachlan, Massey University

New Zealand could become the first country in the world to put a price on greenhouse gas emissions from agriculture.

Leading up to the 2017 election, the now Prime Minister Jacinda Ardern famously described climate change as “my generation’s nuclear-free moment”. The promised zero carbon bill is now underway, but in an unusual move, many provisions been thrown open to the public in a consultation exercise led by Minister for Climate Change James Shaw.

More than 4,000 submissions have already been made, with a week still to go, and the crunch point is whether or not agriculture should be part of the country’s transition to a low-emission economy.

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Zero carbon options

Many of the 16 questions in the consultation document concern the proposed climate change commission and how far its powers should extend. But the most contentious question refers to the definition of what “zero carbon” actually means.

The government has set a net zero carbon target for 2050, but in the consultation it is asking people to pick one of three options:

1. net zero carbon dioxide – reducing net carbon dioxide emissions to zero by 2050

2. net zero long-lived gases and stabilised short-lived gases – carbon dioxide and nitrous oxide to net zero by 2050, while stabilising methane

3. net zero emissions – net zero emissions across all greenhouse gases by 2050

The three main gases of concern are carbon dioxide (long-lived, and mostly produced by burning fossil fuels), nitrous oxide (also long-lived, and mostly produced by synthetic fertilisers and animal manures) and methane (short-lived, and mostly produced by burping cows and sheep). New Zealand’s emissions of these gases in 2016 were 34 million tonnes (Mt), 9Mt, and 34Mt of carbon dioxide equivalent (CO₂e), respectively.

All three options refer to “net” emissions, which means that emissions can be offset by land use changes, primarily carbon stored in trees. In option 1, only carbon dioxide is offset. In option 2, carbon dioxide and nitrous oxide are offset and methane is stabilised. In option 3, all greenhouses gases are offset.

Gathering support

Opposition leader Simon Bridges has declared his support for the establishment of a climate change commission. DairyNZ, an industry body, has appointed 15 dairy farmers as “climate change ambassadors” and has been running a nationwide series of workshops on the role of agricultural emissions.

Earlier this month, Ardern and the Farming Leaders Group (representing most large farming bodies) published a joint statement that the farming sector and the government are committed to working together to achieve net zero emissions from agri-food production by 2050. Not long after, the Climate Leaders Coalition, representing 60 large corporations, announced their support for strong action to reduce emissions and for the zero carbon bill.

However, the devil is in the detail. While option 2 involves stabilising methane emissions, for example, it does not specify at what level or how this would be determined. Former Green Party co-leader Jeanette Fitzsimons has argued that methane emissions need to be cut hard and fast, whereas farming groups would prefer to stabilise emissions at their present levels.

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Why methane should be treated differently compared to long-lived greenhouse gases

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This would be a much less ambitious 2050 target than option 3, potentially leaving the full 34Mt of present methane emissions untouched. Under current international rules, this would amount to an overall reduction in emissions of about 50% on New Zealand’s 1990 levels and would likely be judged insufficient in terms of the Paris climate agreement. This may not be what people thought they were voting for in 2017.

Why we can’t ignore methane

To keep warming below 2℃ above pre-industrial global temperatures, CO₂ emissions will need to fall below zero (that is, into net removals) by the 2050s to 2070s, along with deep reductions of all other greenhouse gases. To stay close to 1.5℃, the more ambitious of the twin Paris goals, CO₂ emissions would need to reach net zero by the 2040s. If net removals cannot be achieved, global CO₂ emissions will need to reach zero sooner.

Therefore, global pressure to reduce agricultural emissions, especially from ruminants, is likely to increase. A recent study found that agriculture is responsible for 26% of human-caused greenhouse emissions, and that meat and dairy provide 18% of calories and 37% of protein, while producing 60% of agriculture’s greenhouse gases.

A new report by Massey University’s Ralph Sims for the UN Global Environment Facility concludes that currently, the global food supply system is not sustainable, and that present policies will not cut agricultural emissions sufficiently to limit global warming to 1.5℃ above pre-industrial levels.

Finding a way forward

Reducing agricultural emissions without reducing stock numbers significantly is difficult. Many options are being explored, from breeding low-emission animals and selecting low-emission feeds to housing animals off-pasture and methane inhibitors and vaccines.

But any of these will face a cost and it is unclear who should pay. Non-agricultural industries, including the fossil fuel sector, are already in New Zealand’s Emissions Trading Scheme (ETS) and would like agriculture to pay for emissions created on the farm. Agricultural industries argue that they should not pay until cost-effective mitigation options are available and their international competitors face a similar cost.

The government has come up with a compromise. Its coalition agreement states that if agriculture were to be included in the ETS, only 5% would enter into the scheme, initially. The amount of money involved here is small – NZ$40 million a year – in an industry with annual export earnings of NZ$20 billion. It would add about 0.17% to the price of whole milk powder and 0.5% to the wholesale price of beef.

However, it would set an important precedent. New Zealand would become the first country in the world to put a price agricultural emissions. Many people hope that the zero carbon bill will represent a turning point. It may even inspire other countries to follow suit.

Robert McLachlan, Professor in Applied Mathematics, Massey University

This article was originally published on The Conversation. Read the original article.