11/03/2012

Three ways to organize waste disposal

(1) commanding
(2) guiding by tax and subsidy
(3) leaving it to individual and the market

A good way for garbage:
Each homeowner contacts with any one of the private haulers who works in the area. They gauge their charges according to how much garbage homeowners put out, the standard rate being augmented by special charges for special hauling. Homeowners can change the haulers at the end of each month if they are not satisfied with the service. The haulers make a deal with a private landfill operator.

Two drawbacks to recycling:
(1) it costs taxpayers more money (opp cost)
(2) it usually injects an element of coercion which is antagonistic both to human values as well as to the efficient working of a free-market system.

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