louise bagshawe passion book review

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When I questioned her as to why the same exact bag was being sold for two different prices her reply was that she had to "fix" her description. Hmmmmm. I have also noticed nothing in the description of these bags has changed. Clearly the introduction of a tax is fraught with dangers from the law of unintended consequences. Even louise bagshawe passion book review if we could correctly target the tax so that it did affect only plastic bags, how do be know we have got the level of the tax right? As economist Arthur Pigou first pointed out, it is rather difficult to get the tax to reduce consumption to the socially optimum level (a perfect Pigouvian tax), which is why it is so much easier to create a market where previously it was missing and allow the Coase Theorem to do the work for you. Unfortunately, since this is not possible in the case of plastic bags, it seems that we will have to make do with a tax.