What could governments do regarding deforestation to be consistent with the full-cost pricing principle of sustainability?
A) Increase taxes on fuel to drive up the price of timber.
B) Replace subsidies/tax breaks that encourage deforestation with forest-sustaining economic rewards.
C) Outlaw logging.
D) Build logging roads so companies can access forest land more easily.
E) Ban the use of cardboard and other paper products.

Question

Quizplus · Accepted Answer

To be consistent with the full-cost pricing principle of sustainability, governments should replace subsidies or tax breaks that encourage deforestation with economic rewards for sustainable forest management. This would incentivize companies to sustainably manage forests rather than engage in destructive practices. Increasing taxes on fuel (A) or banning the use of cardboard and paper products (E) may not be effective in addressing deforestation. Outlawing logging (C) is also not a realistic solution as some amount of logging is necessary for the production of essential products such as lumber and paper. Building logging roads (D) would make it easier for companies to access forest land and may actually encourage deforestation.

What Could Governments Do Regarding Deforestation to Be Consistent with the Full-Cost