Understand the role of incenti

Understand the role of incentives for successful
sustainability efforts. The tragedy of the commons makes it difficult to
improve sustainability efforts by firms and individuals without some external
pressure. To decrease resource consumption and increase recycling and
remanufacturing, a suitable approach is to tax the producer to encourage
resource reduction and reward the recycler to increase the percentage recycled.
A price on emissions is the most cost effective way of reducing emissions.
Emissions can be priced through either a carbon tax or a hybrid cap-and-trade
mechanism.

 
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