Suggested Free Market Incentives for Pollution Control?

Question

Suggested free market incentives for pollution control include government taxes or fees on pollution and government rules mandating refundable deposits on hazardous materials. Explain how those incentives would work.

Answer 1

Here is how it works. The government levees taxes or fees. Companies look at this as an added expense of doing business and rinse the price of their goods or services to the consumers. The government collects extra revenue from the citizens through the companies that are polluting. It appears the government is doing something to solve the problem so everyone is happy even though the problem never gets solved.

There is only one "Free Market incentive" that will make a real difference. The consumer needs to stop purchasing products from companies that are causing the problems. As long as people buy SUVs that get 15 mpg, the car maker is going to keep making them. If people started only buying vehicles that get 40 mpg or more, hybrids, or electric cars, the car makers will quickly change. Government regulation will never solve issues if the consumer wants to purchase the product.

Answer 2

Depends upon the incentives and the strength of enforcement : )

There are few Free Market incentives that work. Government taxes etc are not Free Market, they are governmental.

In Canada soap companies are asking the conservative government to enact a law banning phosphates in soap because they know that only some soap manufacturers will stop using phosphates. A level playing field demands a law. The government is also being pressured by Canadian citizens but still refuses to enact such a simple law!!!

Answer 3

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There are many more free ways to promote your business or website. These are just a few.

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Patrick Bankay

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