Taxing Away the Takeout Trash? Evidence from a Local Packaging Tax in Germany

Abstract

To decrease the amount of packaging waste in the public space and compensate for the disposal costs, the German city of Tübingen has introduced a tax in the amount of €0.50 on disposable takeout beverage and food containers in January 2022. No tax is levied if reusable cups or plates are used by the restaurants and snack bars subject to the tax. This is a unique policy experiment as no other city in Germany has implemented a takeout packaging tax during the period of this study. Using the synthetic control method, I identify appropriate control groups for Tübingen to compare the public waste quantity and the spread of reusable food containers. There is no significant reduction in the weight of the waste in public litter bins in Tübingen. This might be due to the fact that packaging subject to the tax is relatively light in weight compared to other items in the bins such as illegaly disposed household waste. On the other hand, the number of restaurants in Tübingen that offer reusable food and beverage containers increases sharply in the months before the intervention.

Keywords: Packaging tax, environmental taxes, reusable packaging, waste management, policy evaluation

JEL Classification: H23, R11