environmental economics project

  

According to my proposal “The market failure of recycling plastic” , expand it to 8-10 pages not including references but everything else ( font 12, double spacing)1. It need an outline in your paper2.you can indicate the ancillary background material in the outline. Citation of data and major references is required.
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The market failure of recycling plastic
Introduction
According to the trade association PlasticsEurope, world plastic production grew from some
1.5 million tons in 1950 to an estimated 275 million tons in 2010(Charles,2012). However, most
plastic is made from fossil fuels like oil and natural gas , which will cause pollution when it is
burned or landfill . Plastic recycling is ever considered a useful way to reduce pollution . However,
it will make market failure because there are few people being willing to recycle .
The central environmental economic theory
Market failure is a situation in which the allocation of goods and services is not efficient. In
this case, the largest market failure is the social benefits of recycling exceed the private benefits .
For most people, they don’t have awareness to recycle plastic product because it is usually cheap
and it also can’t bring much benefit to them if they recycle. Alternative policies for plastics
recycling are to consider externalities. For example, government intervention is efficient solution
for the market failure. The government can give allowance to encourage people to recycle it. In
addition, I will check how other states in the US figure out this problem.
Conclusion
On the hand, not being recycled plastic will cause the damage of landfills and toxic emissions
from incineration. On the another hand, market failure will be made because private benefits can’t
get satisfied . All in all, the market failure of plastic recycling is a big challenge and more effective
policies are needed to decrease it.

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