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One mechanism is to design the tax to be revenue-neutral for the average taxpayer. For example, with carbon taxes on gasoline, we can calculate what the averag
by mikewave 5y ago
One mechanism is to design the tax to be revenue-neutral for the average taxpayer.
For example, with carbon taxes on gasoline, we can calculate what the average person consumes in terms of gasoline per year, and then calculate the outliers (people with super-efficient cars and people with gas guzzlers). Then, we establish some reasonable maximum that we think we can get away with surcharging the guzzlers, and establish a gradient. The average person is given back a tax break that corresponds to the surcharge they'll pay at the pump, so it's a wash for them; the guzzler gets the tax break too but ends up paying more, incentivizing everyone to be the efficient driver who basically gets a bonus.
I think you could do the same for any kind of tax; establish the baseline for resource consumption efficiency for a particular recyclable commodity (and it will have to be per-commodity to make any sense at all); set up the incentive gradient so that companies producing more-recyclable-than-average goods end up getting free cash for doing so, hopefully offsetting the other costs associated with this, and companies producing things that are harder or impossible to recycle end up paying more.
The end result is that the product for the consumer that is more recyclable should end up making more financial sense. Instead of pinning the gradient the way you do for gas (literally, 'what they can get away with and still get elected'), you'd pin it at a level where it incentivizes companies themselves to be purchasing recycled materials instead of new ones.
All of the above is predicated on the material in question being able to be recycled without requiring more energy input / producing a higher carbon footprint to recycle than acquiring the original raw product is. There are some materials that it's just not worth to recycle, most of the time; plastic is definitely on that side for now, like it or not.