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

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

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

This question considers the possibility of foreign aid in exchange for favors. Suppose nation A has RA resources in its treasury and nation B has RB resources. The winning coalitio

why is public finance important?

which fallacies best diiscribe this statement The restaurant in new is either buddy''s bistro or Clyde emporium

The monetarist and fiscal controversy is still on. The recent history of the U.S. looks like a success story of the monetarists; but besides pure luck, it involved strong element o

Suppose there is certain social norm. Its enactment into statutory law lowers people's private cost of its enforcement because it creates the possibility that violation of norm wi

Your organisation has tasked your to reduce the rate of a particular type of incident or particular type of high risk hazards which is commonly occurring. Your task requires you to

Public Finance was always dealing with intervention through fiscal instruments, including federal relationships between different tiers of governments and later on it subsumed Publ