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by thechao 1542 days ago
The customer ends up holding the negative exernality with little ability to affect the upstream pipeline. By sending the waste "back up the pipe" it becomes each middle-company's problem. The point being that each company now has to consider how to get rid of their own generated waste. It de-externalizes the waste problem.

If they choose to put the waste in to a landfill, then so be it: they have to pay to do that.