Tax-subsidy devices
The simultaneous use of a tax and subsidy approach to deal with environmental problems is a relatively recent phenomenon in environment economics and is exemplified by the reclamation of materials. Their effectiveness depend on the relative costs of primary and secondary sources, examined in figure 9.3 in chapter 9, and the ability to develop the necessary structures to run the schemes, which connect consumers with manufacturers though collection operators. A number of counties in Europe and state in Canada and the USA promote recycling schemes, most using either a levy at the product at the point of sale. Refunds are made as the materials are reclaimed, either at public sector recycling location or by suppliers. There is little evidence to indicate hot efficient such schemes are and unless supported by regulations restricting disposal of recyclable materials, they are unlikely to be adopted by consumers and manufacturers.