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
Introduce uncertainties in attainments of policy outcomes, winning of elections, optimistic and pessimistic expectations of agents and relate it to various adjustments and converge

Examine issues and decisions using the economic way of thinking; identify appropriate economic policy; communicate economics in written format Topic Upon finishing your d

what do you understand by private & public goods. Distinguish between private and public goods.

what is public debt. ? give complate information on public debt. ?

Consider a case, if an insurance company merges with a bank. We know that insurance company bears risk for insurers. Suppose, after merger, bank gets in some trouble for reasons ot

There has been a long history of research on ‘the policy process' which is ‘closely connected to efforts to examine the nature of power in society and to specify the necessary cond

Consider two different consumer-directed health plans. One has a $5000 deductible, with the insurance paying for all care after the deductible has been met. The other has a $2000 d