Disposable Goods Targeted by new French Tax Plan

Technology has not rally without its demerits. Today, one liaison that technology has been able to achieve is an easier and more comfortable life for people. This has been make possible by the easy to use, easy to dispose products that they have introduced to the market. Although we fork up more time and find these products easier to use, the environment suffers the adverse feeling that come with the disposal/defilement of these products.Therefore, the French governing body is planning to reduce the cost, pollution and the effect that these useable products cause in the society at the self very(prenominal)(prenominal) time they argon trying to imbibe the culture responsibility in the people. They are also trying to reduce the populations overall consumption of postcode. The banish externalities here is that this taxation would harm the growth of production companies and this would have an effect on economic growth.In order to drive home the point, the French government is de vising a method of tax on disposables and subsidies on energy effective products that would make the people to be forced to concede to this plan. However, this governing body of taxation and subsidy bears its own consequence too. In the case of disposables, both things can happen. The first thing is that if the tax is applicable to the producers, the price of the disposable products will escalate.On the other hand, if the tax is on the consumers, the supply would be the same and but demand for the products would be reduced. Overall, there would be reduction in supply in a lower proportion. However, in the case where subsidies are given on fuel-efficient cars, demand for these cars would be higher. Considering the deadweight losses, the externalities can not be reduced.