Which 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 a financial incentive for manufacturers and users to reduce pollution. This can lead to the development of more environmentally friendly washing machines and encourage individuals to use them. Regulating capacity or requiring filtering mechanisms may address certain aspects of pollution, but do not provide as direct of an economic incentive to reduce pollution as a tax would. Allowing the Coase theorem to reach an efficient market equilibrium relies on the assumption that all parties involved have perfect information and can bargain efficiently, which may not always be the case in real-world situations.

Which Best Creates Incentives to Reduce the Pollution Generated by Washing