Beyond a Plastic Economy

#makeyourimpactbluePEBCELOYAONSNOTDMICAY

B



#makeyourimpactblueBEYOND A

PLASTIC

ECONOMY

An Exploratory Study on
the Adoption and Impact
of Aruba’s Plastic Bag Ban
in the Retail Sector

B

“Many small people who in
many small places do

many small things that can
alter the face of the world

~African Proverb~

Dedicated to Blue Love A special thank you to:
His Excellency, Governor of Aruba,
BEYOND A PLASTIC ECONOMY Mr. Alfonso Boekhoudt,
without whom this study would
An Exploratory Study on the Adoption and Impact not have been possible.
of Aruba’s Plastic Bag Ban in the Retail Sector
March 21, 2019 My loved ones,
Researcher & Author: Juliet D. Carvalhal for all their support and patience.

All rights reserved. © 2019 Impact Blue Foundation. Professor Kim Greaux,
for her coaching, patience and wisdom.

Armando Goedgedrag.
This production is a collaboration
between Armando Goedgedrag
and Impact Blue Foundation,
and our shared desire to feature Aruba’s
natural beauty and the importance of
sustaining it.

All pictures featured in this production
are the astounding works from Armando
Goedgedrag: avid nature-lover,
multimedia specialist, and painter.

All featured nature pictures:
© 2019 Artmando Multimedia

KEY MILESTONES

Evaluation: Plastic Bag Ban Aruba Mar 2019

Impact Blue Foundation Founded Jun 2018

Plastic Bag Ban Aruba Effective Jan 2017

Law passed unanimously in Parliament Jun 2016

Draft Law to Parliament Feb 2015

Start of Process Dec 2013

On June 28, 2016 the Parliament of Aruba conducted by means of a survey among retail owners FOREWORD
unanimously voted to pass a proposal to ban single- and directors/managers. The target population
use plastic bags. After a six-month grace period, the law included e.g. supermarkets, restaurants, food trucks,
came into effect on January 1, 2017. The law targeted and any and all other retail where products are sold to
the retail sector of Aruba, whereby it became prohibited the end-consumer whereby shopping bags are used.
to sell, rent or freely distribute single-use carry-out Key findings of the study offer insights into the
plastic bags, with a handle, at any and all points-of-sale. main drivers and effects of the plastic bag ban among
The ban included the selling of these carry-out bags retail respondents, as well as the approach, design
in rolls as well as single-use carry-out biodegradable and implementation framework. In addition, insights
plastic bags. The penalty for non-compliance was into the beliefs, values and attitudes of the target
set at a maximum of AWG 10,000.- within the legal respondents are also shared.
framework. Moving beyond a plastic economy toward a circular
Enforcement was executed since early March 2018 model, this baseline study provides new insights into
through City Inspector, whereby over twenty fines best practices toward future legal framework designs
have been given as of early June 2018. Although the and collaborative approaches. Furthermore, awareness
visual impacts in Aruba’s flora and fauna are apparent, and educational platforms can be designed as
no evaluation was conducted to ascertain if and how audience-specific to maximize resources and enhance
the law was being implemented from a retail business adoption potentials.
perspective, especially considering that Aruba’s This study was conducted in partnership and
Plastic Bag Ban was the first law of its type. As part collaboration with Total Finance N.V., ArubaBank, N.V.,
of my studies at the University of Aruba, Faculty of ASD Aruba N.V., Marriott International Aruba, Hilton
Hospitality & Tourism Management, and as creator and Aruba Caribbean Resort & Casino, Bucuti & Tara Beach
co-developer of Aruba’s Plastic Bag Ban, I opted to base Resort Aruba, VNO Aruba (Vertegenwoordiging van
my thesis on the topic. The results presented herein are Nederland op Aruba), and the Aruba Trade and Industry
an executive summary of my research. Association. Thank you all for your leadership, and for
The aim of the research was to describe the believing in the importance of my research!
status of the plastic bag ban adoption, diffusion and
substitution, to evaluate the law based on its innovation Juliet D. Carvalhal
characteristics, to explore why retail businesses may Impact Blue
have adopted and substituted plastic bags, and to
investigate how adoption may have impacted business Founder, Director
performance of the retail sector. The research was #makeyourimpactblue



Introduction 10 TABLE OF CONTENTS
Research Model 15
Results
- Demographics 16
- State of Adoption 18
- Substitutions 21
- Drivers of Adoption 22
- Innovation Characteristics 25
- Business Performance 26
- Validated Model 28
- Discoveries 30
Beyond a Plastic Economy
- Policy Recommendations 33
- Business Recommendations 35

INTRODUCTION THE BIG PICTURE
Vision:

Shift from a linear
to a circular economy

Global Vision: Unlocking Value

Redesign disposable plastic products, for example packaging,
10 to more durable materials or designs to increase recyclability.

Sources: OECD, 2018; World Economic Forum & Ellen MacArthur Foundation, 2017; UNEP, 2018

SINGLE-USE PLASTIC BAG FACTS & FIGURES

ANNUAL USAGE ON ARUBA PRE-LAW: 30 MILLION INTRODUCTION
GLOBAL ANNUAL USAGE: 5 TRILLION*
GLOBAL RECYLCING RATE: 5%**
ARUBAN RECYLCING RATE: 0%
# OF BANS IN CARIBBEAN: 14***
# OF BANS WORLDWIDE: 100****

RATE OF ALL PLASTIC WASTE EVER PRODUCED IN LANDFILL, 11

DUMPS OR ENVIRONMENT: 79%*****

Sources:
* US EPA. (2016, November 1). Confronting Plastic Pollution One Bag at a Time. US: US Environment Protection Agency.
** Worldwatch Institute (2019). www.theworldcounts.com
*** UNEP(DEPI)/CAR WG.39/INF.8 11 July 2018. Report on the status of Styrofoam and plastic bag bans in the wider
Caribbean region.
**** UNEP (2018). SINGLE-USE PLASTICS: A Roadmap for Sustainability
***** Geyer, R., Jambeck, J.R., Law, K.L. (2017). Production, Use and Fate of all Plastics Ever Made. Science Advances Vol.3, no. 7.



Simplified linear value-chain of a single-use plastic bag on Aruba

Aims: INTRODUCTION

1. Describe the current status of plastic-bag ban adoption, diffusion and substitution
2. Evaluate the law based on its innovation characteristics
3. Explore why retail businesses adopted and substituted plastic bags
4. Investigate how adoption impacted business performance of the retail sector.

METHOD # OF VALID RESPONDENTS TYPE OF STUDY TARGET GROUP

SURVEY 305 EXPLORATORY OWNERS 13

DIRECTORS
MANAGERS



EXTERNAL ADOPTION FINANCIAL RESEARCH MODEL
PRESSURES PERFORMANCE
ININNNOOVVAATTIOIONN SERVICE QUALITY
INTERNAL CCHHAARRAACCTTEERRISISTTICICSS PERFORMANCE
PRESSURES OPERATIONAL
PERFORMANCE

INNOVATION
PERFORMANCE

External and internal pressures were identified as the independent variables. Innovation characteristics were 15
identified as the moderating variable. Business performance was identified as the dependent variable. Both
independent and moderating variables were predicted to influence adoption, whereby adoption influences
business performance.

RESPONDENT DEMOGRAPHICS Gender: 46.7%
Female 53.3%
Male

Age: 18.9% NOORD/
< 30 years 75.4% TANKI
31-65 years 27.7%
> 65 years 5.7%
PARADERA
ORANJESTAD 6%

53.7%
SANTA CRUZ
3.5%

Country of Birth:

Aruba 40.7% SAN NICOLAS
India 13.0% 9.1%
Netherlands 10.5%
Colombia
Venezuela 7.7%
China 5.3%
Others 4.2%
18.6%

16 100%

Function: % of stores that NEVER operated with BUSINESS DEMOGRAPHICS
Business Owners 52.6% single-use plastic shopping bags
Director or Manager 47.4%
25.7%
74.3%

Type of Retail Operation: % of stores that operated with
single-use plastic shopping bags
Clothing and Apparel 27.2%
Full-Service Restaurant 12.2% Size of Retail Operation:
Health & Personal Care One or less employees 13.7%
7.9%
Supermarket 7.2% Between 2 to 4 employees 26.7%
General Merchandise 7.2% Between 5 to 10 employees 27.0%
6.2% Between 11 to 20 employees 16.1%
Jewelry Between 21 to 50 employees 6.7%
Between 51 to 100 employees 5.3%
Take-Out Restaurant 5.2%
101 or more employees 4.6%
Electronics & Appliances 3.9% 100.0%

Souvenir 3.6%

Mini-Market or Convenience Store 3.0% 17
Other 16.4%
100.0%

Current State of Adoption among Retail Respondents

ADOPTERS IN-TRANSITION NON-
ADOPTERS ADOPTERS

STATE OF ADOPTION 71.8% 19% 9.2%

Diffusion of Adoption among Retail Respondents

18

Adoption among Adoption by Size of Operation:
Retail Respondents
by Demographics One or less employees 66.7%
Between 2 to 4 employees 68.4%
Between 5 to 10 employees 70.1% STATE OF ADOPTION
Between 11 to 20 employees 69.6%
Between 21 to 50 employees 94.7%
Between 51 to 100 employees 53.3%
100.0%
101 or more employees

Adoption by Retail Type:

NOORD/ ADOPTION Building Materials & Equipment 100.0%
TANKI BY REGION Mini-Market or Convenience Store 88.9%
77.2% 83.3%
Electronics & Appliances 80.0%
PARADERA Food Truck 78.4%
ORANJESTAD 70.6% 77.3%
Full-Service Restaurant 77.1%
68% Supermarket 72.7%
SANTA CRUZ 68.4%
70.5% Clothing and Apparel 62.5%
General Merchandise 56.3%
SAN NICOLAS 50.0%
73.1% Jewelry 50.0%
Health & Personal Care 36.4%
19
Take-Out Restaurant
Furniture & Home Furnishings

Gasoline Stations
Souvenir



Substitution Bags among Retail Respondents

50
44.6%

40

30 18.4% SUBSTITUTIONS
21.6%

20

10

3.3% 3.6% 1.3% 2% 1% 3.6%

NON- RECYCLED REUSABLE OTHER SINGLE- SINGLE- SINGLE- BYOB OTHER
RECYCLED PAPER BAGS SINGLE USE USE USE USE
BAGS (ALL
PAPER BAGS PLASTIC PLASTIC PLASTIC
BAGS MATERIALS) (NO PAPER BAGS BAGS BIODE-
/ PLASTIC) GRADABLE
WITHOUT BAGS
HANDLE

Did you know? 21
Aruba’s Plastic Bag Ban also includes a prohibition of single-use plastic biodegradable bags. These type
of bags usually still contain plastic, which do not help solve microplastic pollution. Even if these bags are
primarily plant-based, industrial composting or incinerators are needed to process after use.

EXTERNAL DRIVERS OF ADOPTION AUTHORITATIVE PRESSURES

IT IS OUR DUTY TO LEGAL ENFORCEMENT AVOID RISK
INQUIRE & COMPLY PRESSURES PRESSURES OF A FINE

≈ 89% ≈ 56%

≈ 20% COMPETITIVE CONSUMER ≈ 31%
PRESSURES PRESSURES
OUR STORE WOULD HAVE OUR STORE’S REPUTATION
SUFFERED A COMPETITIVE WOULD HAVE SUFFERED

DISADVANTAGE

MARKET PRESSURES

22

BEHAVIORAL INTENTIONS INTERNAL DRIVERS OF ADOPTION

KNOW HOW 52%RIGHT TO

78% ≈ TO SWITCH LOCUS OF EGOISTIC CHOOSE ≈
TO OTHER CONTROL

BAGS

62% ≈ BANNING ATTITUDE ALTRUISTIC 81%MY
ALL
BUSINESS ≈
PLASTICS
IS GOOD CAN HELP

REDUCE MORE

81% ≈ COSTS / BUSINESS BIOSPHERIC 55%IMPORTANT≈
IMPROVE STRATEGY
THAN OUR
EFFICIENCY PROFITS

Control, attitude and business strategy (or subjective HEDONISTIC 43%ENJOY ≈
norms) are influenced by rationally processed BEACH
motives*. Personal values, beliefs and norms effect pro-
environmental behaviors, which subsequently affect CLEANUPS
managerial and organizational behaviors**.
Source: *Fishbein, M., & Ajzen, I. (1975). Belief, Attitude, VALUES, BELIEFS & NORMS 23
Intention, and Behavior: An Introduction to Theory and Research.
** Stern, P. C. (2002). New Environmental Theories: Toward a
Coherent Theory of Environmentally Significant Behavior



Innovation characteristics are BAGS WE USE INNOVATION CHARACTERISTICS
based on Innovation Diffusion 50%NOW ARE
Theory*, and refer to the design PERCEIVED GAINS ≈
functions of the innovation. COMPATIBILITY BETTER FOR
TRIALABILITY MY BUSINESS
Innovation characteristics, COMPLEXITY
in the case of the plastic bag OBSERVABILITY HELPED ME ≈ 75%
law, are the perceived gains of LEARN
the innovation, compatibility
and trialability within retail SUFFICIENT ≈ 65%
operations, complexity of the TIME TO
law, and the observability of LEARN &
the law. EVALUATE

These design traits were 75%EASY TO
applied to assess the innovation UNDERSTAND / ≈
characteristics of the plastic SIMPLE TO
bag ban from the perspective of
the retail sector. IMPLEMENT

I SAW ≈ 70%
EVERYONE
IMPLEMENT /
AWARE OF
CAMPAIGN

25

Source: *Rogers (1995). Diffusion of Innovation (4ed.). The Free Press; Simon & Schuster Inc.

25% FREE PLASTIC BAGS OVERALL ≈ 73%
≈ WERE NEGATIVELY SERVICE QUALITY
AFFECTING OUR PROFITS WAS UNAFFECTED

BUSINESS PERFORMANCE COSTS OF IMPLEMENTING FINANCIAL SERVICE QUALITY CUSTOMER BUYING BEHAVIORS
THE LAW WERE PERFORMANCE PERFORMANCE WERE UNAFFECTED
EXTREMELY HIGH
≈ 67%
55% ≈

63% ≈ INNOVATION OPERATIONAL ≈ 24%
PERFORMANCE PERFORMANCE
WE INTRODUCED OTHER WE INCREASED OUR
ECO-FRIENDLY MATERIALS MARK-UP RATE TO ABSORB
INTO OUR OPERATIONS
SUBSTITUTION COSTS

24% ≈ INTRODUCED NEW 55%WE RE-TRAINED OUR
PRODUCT LINE OR
BUSINESS VENTURE CCUASSHTOIEMRESRTEOXMPAENCATAGTEIONS≈

62%OVERALL AND IN GENERAL, THE IMPACT ON OUR≈
BUSINESS WAS EITHER NEUTRAL OR POSTIVE
26

The Plastic Bag Ban
was Good for Aruba

OVERALL IMPACT

≈ 89% 27

VALIDATED MODEL EXTERNAL ADOPTION FINANCIAL
DRIVERS PERFORMANCE
INNOVATION
INTERNAL CHINANROACVTAETRIOISNTICS SERVICE
DRIVERS CHARACTERISTICS QUALITY
PERFORMANCE
28

IMPACTS ON EGOISTIC (-) PERCEIVED KEY DRIVERS
ADOPTION ALTRUISTIC GAINS
BIOSPHERIC COMPATIBILITY
LEGAL HEDONISTIC TRIALABILITY
COMPLEXITY
CONTROL

ATTITUDE

External drivers: 29
Legal pressures had a moderate impact on rate of adoption. Enforcement, competitive and consumer
pressures had no impact on adoption. Non-adopters were likely to be more sensitive to enforcement and
competitive pressures compared to adopters.
Internal drivers:
Business strategy had no impact on adoption. Egoistic values had a negative impact on adoption. Control,
attitude and hedonistic values had a small impact on rate of adoption. Altruistic and biospheric values had a
moderate impact on rate of adoption. Non-adopters had a lower locus of control compared to adopters.
Innovation characteristics:
All characteristics had a small impact on rate of adoption except for observability. Innovation characteristics
scored lower among non-adopters compared to adopters.
Business performance:
Adoption had a small positive impact on financial and service quality performance. Adoption had no impact
on operational and innovation performance.

DISCOVERIES EXTERNAL INNOVATION ADOPTION FINANCIAL
PRESSURES CHARACTERISTICS PERFORMANCE
SERVICE QUALITY
INTERNAL PERFORMANCE
PRESSURES OPERATIONAL
PERFORMANCE
INNOVATION
CHARACTERISTICS INNOVATION
PERFORMANCE
30

ON ADOPTION ON INNOVATION CHARACTERISTICS

LEGAL PERCEIVED CONSUMER CONTROL
CONTROL GAINS
ALTRUISTIC
BIOSPHERIC COMPETITIVE ATTITUDE KEY DRIVERS
HEDONISTIC ENFORCEMENT BUSINESS
STRATEGY
ALTRUISTIC

BIOSPHERIC

The following discoveries were made during analysis: 31
The model depicts a comprehensive approach to maximize adoption and business performance, whereby
external pressures, internal pressures and innovation characteristics are all integrated into the full process:
approach, design and implementation.
This baseline assessment study provided by the preliminary research model created a direction for future
exploration into discoveries.



AUTHORITATIVE POLICY RECOMMENDATIONS
1. Legal framework is thoroughly communicated, understood, and accessible to all target groups.
2. High sanctions are set to stimulate adoption through perceived risk avoidance. 33
3. Enforcement is dedicated and resources are allocated.
4. The legal framework benefits from a strong consensus and commitment within the government system.
MARKET
1. Stimulate collaboration within sub-segments of the retail sector to increase cross-competitive

learning and decrease friction.
2. Develop necessary tools to aid in education, awareness and implementation of all target groups.
3. Education and awareness: share insights with consumers and involve them in social control opportunities.
4. Tap into the innovators and early-adopters: the more observable adoption becomes, the more likely

the acceleration to adopt.
BEHAVIORS & VALUES
1. Develop and stimulate target group self-confidence (locus of control) by designing and implementing

feasible, beneficial and tangible legal frameworks and platforms.
2. Stimulate positive attitudes by designing and implementing easy, compatible, tangible and beneficial

frameworks.
3. Nurture and strengthen pro-environmental values to enable increased rates of innovators and early adopters.
4. Tap into hedonic values: design and implement awareness campaign activities that are fun and enjoyable.
DESIGN & APPROACH
1. Legislation, implementation and awareness efforts are designed to be compatible, easy, feasible, tangible

and beneficial.
2. Contextualized and comprehensive approaches will likely achieve highest adoption rates.
3. Build capacity by creating ownership and mutual learning opportunities, through collaborative practices

(e.g. create branding opportunities for key partners by outsourcing awareness campaign activities).
4. Identify and pre-empt potential bottlenecks and work with key stakeholders to find mutually-beneficial

solutions.



AUTHORITATIVE BUSINESS RECOMMENDATIONS
1. Check www.parlamento.aw (statenstukken) or www.overheid.aw (landscouranten) regularly for new
35
or amended regulations.
2. Check with your peers in business to find more information on technicalities. ATIA and KvK Aruba can

also provide assistance.
3. Almost 30% of retail respondents indicated being controlled or fined. The sanction for the Aruba Plastic

Bag Ban is set at a maximum of AWG 10,000. Avoid the risk of a sanction by complying with the law.
MARKET
1. Educate and work with your customers: the more support you gain from them, the more feasible and

beneficial adoption can be for your business.
2. Collaborate with your competitors: the more traction you gain by working together, the easier adoption

can be for your business and the higher the likelihood of improving your business performance.
3. Decrease cost burden of adoption by making bulk purchases of environmentally-friendly bags with

competitive peers.
BEHAVIORS & VALUES
1. Educate yourself on environmental practices and how others incorporate these into their business models.
2. Reflect on how your values could shape your company: educate, teach and inform your employees, your

customers and your suppliers.
3. Develop a corporate social responsibility program: embed values and environmental stewardship in

your daily practices.
DESIGN & APPROACH
1. Evaluate your business model based on international standards and local contexts: how could your

company shift toward an innovative and circular brand?
2. Evaluate your business and its supply chain (up- and downstream): are there any opportunities to unlock

shared value, decrease your waste footprint and save on costs?
3. Involve your team (employees) in your business transition: the more ownership you create in the work

environment, the more likely your business performance will improve.



#makeyourimpactblue

@impactbluefoundation
For additional information on this study,

or any other inquiries, please contact:
Juliet D. Carvalhal
Impact Blue
Founder, Director

E [email protected]

All rights reserved. © 2019 Impact Blue Foundation

In collaboration with: