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Synopsis & Instructions In 2019, Albuquerque banned grocers and other stores from using single-use bags at checkout. Supporters of the ban on single-use plastic bags note the negative externalities that they cause (in particular, littering, filling up oceans, and creation of toxins). Three years later, in 2022, the City Council lifted the ban. In this analysis, you'll apply concepts from class to consider the effects of using single-use plastic bags. Assume the following: Markets are perfectly competitive. Proponents of the plastic bag ban argue that their use by consumers generates a negative externality. Should they be banned or not? Explain your answer by addressing the following. 1. Create a graph of the plastic bag market. (hint: Is it the consumption or the production of the bag that is generating the externality in question ?). Make sure to explain your graph and illustrate the difference between the market equilibrium and social optimum. 2. Can the Coase Theorem be used in this case? Why or why not? 3. If the government were to step in, what policy (as discussed in class) could it implement instead of banning plastic bags? Show the effect of your policy on your graph. 4. (+5 points extra credit) The simple analysis above assumes only that single-use plastic bags generates a negative externality. But as economists, we want to acknowledge the full costs and benefits of a policy. What are some other benefits of banning plastic bags that an economist would need to consider? What are the costs of banning plastic bans that should be considered?(Albuquerque) City Council repeals plastic bag prohibition https://www.abqjournal.com/2477132/city-council-repeals-plastic-bag-prohibition.html BY JESSICA DYER / JOURNAL STAFF WRITER MONDAY, MARCH 7TH, 2022 AT 11:35PM Three years after passing Albuquerque's plastic bag ban, the City Council has thrown it out. The City Council voted 6-3 late Monday to repeal the Clean & Green Retail Ordinance, which barred grocers and other stores from providing single-use plastic bags at checkout. The vote came over vocal opposition from members of the public who spoke during the meeting and provided dozens of written comments. Many called it a step backward and questioned why the Council was making a decision before the city completed its ongoing study into the ban's impact - or why leaders were reconsidering it at all given the city's other pressing concerns like crime and homelessness. But Councilor Brook Bassan, who sponsored the repeal bill, said Albuquerque residents should be able to use plastic bags if they want. "People should have the choice of what they want to do; people should have the option to decide what's best for them," she said. Councilors Renee Grout, Dan Lewis, Trudy Jones, Klarissa Pena and Louie Sanchez voted with Bassan to repeal. Isaac Benton and Pat Davis - who co-sponsored the original ban - joined Council newcomer Tammy Fiebelkorn to vote against the repeal. Fiebelkorn apologized to the bag ban's supporters, particularly the young people who helped push it through three years ago. "This is not the way government is supposed to work; you worked, you did the work, you put in the excessive amount of time to get this passed, and it should not keep coming back up over and over and over again," she said. The Council passed the ban in 2019. It took effect in January 2020, but Mayor Tim Keller quickly shelved it due to COVID-19. He suspended enforcement in March 2020, a pause that lasted about 16 months.The ban returned Aug; 1, 2021 and was strengthened shortly thereafter when the city closed a loophole that had enabled retailers to distribute heavier plastic bags at checkout. Only two oouncilors who originally voted for the ban co-sponsors Isaac Benton and Pat Davis remain on the Council today, and the legislative body now leans more conservative overall; Keller has expressed support for the ban, tweeting on Saturday that the \"Clean & Green ordinance is one step to reducing plastic waste and litter in our city. City Council commissioned an impact study when they originally passed it let's see the results before Council considers a repeal of this popular policy.\" The mayor has veto authority; however, the Council can override his vetoes with six votes. The original ordinance required the city to convene a multi-departmental committee to study the impacts of the ban after the rst two years specically how many bags the ordinance diverted from the city's garbage stream and report the ndings by June 30, 2022. Solid Waste Director Matthew Whelan told the Council Monday the study was underway