HomeAni: Letran Calamba Research Reportvol. 1 no. 1 (2011)

Economic Effects of Municipal Ordinance 2008-752 in Los Baños, Laguna

Alfred Benjamin R. Garcia

Discipline: Economics



The aim of the study was to identify and measure the economic effects of Municipal Ordinance 2008-752 in Los Baños, Laguna. The ordinance prohibits the use of plastic bags on dry goods and restricts their use on wet goods. The study also aimed to test what characteristics of the households and firms had an effect on their level of compliance. Descriptive method of research was used. The 214 respondents involved in the study came from various households in 13 of the municipality’s 14 barangays and 58 commercial establishments from districts with high concentration of commercial activities. To interpret the data, tabular analysis with percentages distribution, dependent t-test for paired samples, and contingency table analysis were applied.

The study revealed that while the exact effect of the ordinance on the waste generation of the municipality has not yet been isolated, the ordinance is cost-effective because the commercial establishments have reduced their expenses on packaging due to this policy’s implementation, thus, having a significant positive effect on their profits. On the other hand, the ordinance has no significant effect on the consumption pattern of the residents. Furthermore, it has been identified that the consumers’ level of compliance to the ordinance varied with their gender, educational attainment, and age while the commercial establishments’ compliance varied with the kinds of goods they offered. This means that the municipal government should increase its effort in encouraging the different groups to abide by the ordinance especially those who have identified to have a lower probability of compliance.