Economic Incentives to Encourage Hazardous Waste Minimization and Safe Disposal
This report examines opportunities for the application of economic incentive instruments for the management and reduction of hazardous wastes. The analysis concludes that as long as firms comply with existing regulations and bear potential tort liability, no additional incentives appear to be warranted. There may be significant residual external damages, however, if full compliance cannot be ensured. Neither waste-minimization standards not simple economic incentives appear promising as regulatory strategies aimed at noncompliant firms. An innovative economic incentive instrument is examined in which the overt identification of noncompliers is not required.