Consumer Preference for Attributes of Single-Use and Multi-Use Plastic Shopping Bags in Cape Town: A Choice Experiment Approach

Abstract

Single-use plastic bags are increasingly becoming unpopular across the globe due to growing concerns over plastic pollution, which is threatening both terrestrial and marine ecosystems. Creating policy interventions to reduce plastic consumption requires objective information about local conditions. This study uses a choice experiment to elicit consumer preference for attributes of shopping bags from a sample of 250 consumers in Cape Town. Following the literature, we estimate the conditional logit model and the mix logit model and perform appropriate tests to establish a model which fits our data. Our results show that consumers in Cape Town prefer small and medium-sized bags relative to the status quo. They also care about durability, reusability, style, and recyclability of shopping bags. The highest willingness to pay is associated with a medium-sized shopping bag (R3.76), followed by a shopping bag that is reusable (R3.35), then a shopping bag that is styled (R2.16), then a small-sized shopping bag (R1.74), then a durable shopping bag (R1.50) and finally a recyclable shopping bag (R1.25). By aggregation, the willingness to pay of a small-sized shopping bag that is recyclable is R2.99 which is equivalent to the maximum price that the respondent is offering for a single-use plastic bag (R2.92). The willingness to pay of a medium-sized and reusable shopping bag is R7.11 per unit which is at least as high as the minimum price that respondents would consider for alternative packaging (R7.37). Finally, taking into consideration all the important attributes, we arrive at a willingness to pay ranging from R9.99 to R12.01 per bag for a small and medium shopping bag, respectively. Our results call for a combination of policy instruments such as a subsidy on expensive durable and reusable shopping bags to increase demand while at the same time increasing the levy on single-use plastic bags to reduce demand. More effort is needed to increase appreciation and perception of recyclable products.