Wednesday, July 09, 2008

Unit 2: Reducing negative externalities associated with rubbish and landfill

This BBC article reports an imaginative scheme to reduce landfill

http://news.bbc.co.uk/1/hi/uk/7497398.stm

a) How would this system work to reduce the market failure?
b) What is the difference between this system and taxing people by the amount of rubbish they produce?
c) Evaluate the extent to which either scheme would be likely to succeed

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