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Free market incentives for pollution control

1. 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.

2. Why do plaintiffs typically experience great difficulty in prevailing in negligence actions alleging injury from toxic substances?

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1. Fees on pollution or government taxes would add to the manufacturing or production costs of the factory/ manufacturing unit. This is definitely going to eat into the profits of the manufacturer, and therefore, the manufacturer or the producer will be compelled to reduce this tax burden or fees. Similarly, unless the hazardous materials are reprocessed and deemed safe to be released into the environment, the producer/ manufacturer will not get ...

Solution Summary

The solution analyzes the free market incentives for pollution control. The solution explains how these incentives work. An analysis of difficulty in prevailing negligence actions alleging injury from toxic substance is given.

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