Question

Discuss in depth the wider possibilities for deposit-refund policies to mitigate industrial emissions.

Answer 1

Liability rules can be divided into 3

1. non-compliance fee

2. Deposit refund system

3. Performance bonds

Liability rules are structured so that there is an incentive for producers and consumers to follow a prescribed mandate. Deposit refund system is where purchasers of pollutant products pay a surcharge which is refunded when they return the product or container of the product to an approved center for recycling or disposal. This instrument targets the attitude and behavior of the citizen and induces positive environment behavior. India, Egypt, France all have its system in place especially with respect to beverage containers.

Possibility - In India, some of the students from a public school gathered the waste and segregated it based on the companies and sent it to each company. This is a possibility for companies to not only help the environment but they will also be cutting down on the cost of production as industries will then have to produce less and can reuse the majority. When the production reduces so do the emissions released. Companies should have centers in cities or even states where we can go deposit the container or product after its use. In return, the company should return either some benefit-in-kind or monetary or even can charge a few extra dollars stating then that amount will be returned if one goes deposits it in the company deposit booth or center.