A Maine legislator wanted to create a deposit on cigarettes butts.If implemented,people would have the incentive to (1)not toss cigarette butts onto public streets and sidewalks,and (2)pick butts up to redeem them for the cash.The degradation of the environment from littered cigarette butts is a
A) private goods problem.
B) Nash equilibrium.
C) Tragedy of the Commons.
D) cost-benefit equilibrium.

Question

Quizplus · Accepted Answer

The situation described is a Tragedy of the Commons, where individuals do not bear the full cost of littering cigarette butts, but instead, the cost is spread over the entire society. In this case, a deposit on cigarette butts would create an incentive for people to change their behavior and take responsibility for the cost of properly disposing of their cigarette butts.

A Maine Legislator Wanted to Create a Deposit on Cigarettes