Question

Lawrence Reed in his article "The Role of Incentive" states that the best way to curb pollution and misuse of resources is to?

Answer 1

Answer:

Like the title of the article states, all economy relayed choices are the results of an incentive or disincentive a potential polluter faces. He gave the example of the Lake Erie, stating that is highly reasonable (although highly unethical) it is polluted, as it is financially efficient to simply dump garbage in the lake, rather than invest in a recycling or waste management system. He also added, that since the lake is a public good, no one will look at the pollution as a serious concern, since it isn't owned by anybody.

All of this implies that a structured, incentive system has to be created in order to curb pollution.