Environmental Economics & Policy 6th Edition by Tom Tietenberg,Lynne Lewis

Exercise 3

Many areas have attempted to increase the amount of recycled waste lubricating oil by requiring service stations to serve as collection centers or by instituting deposit-refund systems. On what grounds, if any, is government intervention called for? In terms of the effects on the waste-lubrication-oil market, what differences should be noticed among those states that do nothing, those that require all service stations to serve as collection centers, and those implementing deposit-refund systems? Why?