Summary of environmental policy, Public Economics

Summary of Environmental Policy

Environmental pollution is considered as 'public bad' that arises mostly due to the problem of externalities and the lack of property rights. As the polluter does not take into account the social cost due to pollution in his decision-making, there is more than optimal supply of polluting goods. Earlier public policy to control pollution was in the form of command and control measures. In recent years, however, policy instruments in the form of taxes, charges and tradable permits, which are based on market incentives and polluter-pays principles, have been quite popular, particularly in developed countries. These instruments are considered to be better than government regulations as the compliance cost is lower and it provides scope for innovation.

Although market-based instruments have made inroads into developing countries, they are not used extensively. The level of economic development, nature of technology used, and priority assigned to growth over environment, is some of the factors responsible for the slow pace of MBIs. In such circumstances informal regulations - by judiciary, corporate firms, and community groups -have been quite popular in developing countries.

Posted Date: 12/18/2012 7:40:29 AM | Location : United States







Related Discussions:- Summary of environmental policy, Assignment Help, Ask Question on Summary of environmental policy, Get Answer, Expert's Help, Summary of environmental policy Discussions

Write discussion on Summary of environmental policy
Your posts are moderated
Related Questions
Define the concept of economic growth?

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Industries in the country of Technologia invest in latest equipment that annually enhance productivity of private workers by three percent. Government employees do not profit from

Assignment This assignment will provide you with insight on how others perceive you. It will be particularly useful in situations in which you find differences in self-other resul

Recent standardized test scores suggest that the Milwaukee Public School system is facing a profound moment of crisis, a reality shared by school districts in many other US cities.


Earlier than the Civil War, the South graded with the North and with England. It sold cotton and bought manufactured goods and food. Throughout the war, one of Lincoln's first acti

Jack and Jill live alone on an island. Their labour supply schedules are identical and given by L = (1 - t)w, where t is the income tax rate and w denotes the wage. Jill''s wage

How burden of public debt is transferred to future generations through reduced capital formation?

Question: (i) There are certain benchmarks for measuring the success of infomercials" what are those benchmarks in relation to the value of a product or service? (ii) It i