Which of the following best creates incentives to reduce the pollution generated by washing machines?
A) regulating the capacity of washing machines
B) requiring appropriate filtering mechanisms on washing machines
C) taxing the pollutants directly caused by washing machines
D) allowing the Coase theorem to effectively reach an efficient market equilibrium.

Question

Quizplus · Accepted Answer

Taxing the pollutants directly caused by washing machines creates an economic incentive for manufacturers and consumers to reduce the amount of pollution generated by washing machines. By increasing the cost of producing and using machines that release pollutants, manufacturers and consumers are encouraged to find ways to reduce the pollution, such as by developing more efficient filtering methods or using alternative, cleaner energy sources for powering washing machines. This approach is also consistent with the polluter pays principle, which places the burden of pollution on those who create it.

Which of the Following Best Creates Incentives to Reduce the Pollution