Wednesday, September 3, 2008

What a waste (Economist)


http://www.economist.com/daily/chartgallery/displayStory.cfm?story_id=12032417&source=features_box_main
comment i liked:
Product pricing is generally based upon production/overhead costs only, ignoring consumption externalities like disposal costs (or greenhouse gas emissions). This is a market distortion which can be minimized by incorporating components of the price of disposal into every product and its packaging. I would integrate this with the overall environmental/health impact surcharge I have mentioned in other posts, possibly as a replacement of sales or value added taxes. This could be revenue neutral while allowing market forces to shape consumption patterns to more accurately reflect true ecological and societal costs. By extension, this would result in more optimal levels of consumption and incentivize the development or adoption of superior solutions.

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