Analyzing the Environmental Impact of Plastic Bag Regulations: A Panel Data Study on PM2.5 Levels

Saliha Khalid
Supervisor Name: Dr. Rafi Amir Ud Din

ABSTRACT
Background: Plastic pollution has arisen as a major environmental problem due to its negative impact on ecosystems and human health. In response to this worldwide challenge, numerous nations and regions have established regulations to reduce the usage of plastic bags. These restrictions aim to prevent the use and inappropriate disposal of plastic bags, hence reducing their negative environmental effect. However, the effectiveness of such interventions in improving air quality, particularly in terms of particulate matter (PM2.5) levels, remains a significant area of research.
Method: The study used a panel data technique, which allows it to examine numerous nations during a specific time period. The effectiveness of bans across 208 countries is examined, building on the previous work, which demonstrates the advantages of panel data over time series data. The analytical methods utilized in this study include fixed effect regression, the Generalized Method of Moments (GMM), and the Driscoll and Kraay technique.
Results: The main focus of the study is on the impact of plastic bag regulations on PM2.5. The fixed effect estimation shows the negative coefficient of ban is -0.84, which is statistically significant. This shows that plastic bag ban had a negative relationship with PM2.5. The Driscoll and Kraay estimation also show the negative coefficient of ban, which is significant at the 1%level. By using GMM coefficient of ban is also negative and significant at the 10% level. The coefficient for tax is positive and statistically significant in all three models. This shows that the plastic bag tax had a positive relationship with PM2.5.
Conclusion: Analyzing the environmental impact of plastic bag regulations on PM2.5 levels is critical in determining how effective these policies are in reducing air pollution caused by plastic trash. This study uses a panel data technique to give evidence-based insights into the link between plastic bag bans and PM2.5 levels while accounting for other factors impacting air pollution. The findings of this study will assist to guide sustainable environmental policies and practices by adding to the increasing collection of information on plastic pollution.