Adoption of this principle as part of government policy towards the environment involves intervening in markets to protect the environment by placing the onus of. In essence, the union interpretation of the polluter pays principle is not shared by the member states. Janannath v union of india, applying the said principle, the court held the aquaculture shrimp culture industry that had been functioning within the coastal regulatory zone crz notification as liable to pay the affected persons on the basis of the polluter pays principle. Exploring liability and the polluter pays principle. The polluterpays principle ppp was adopted by oecd in 1972 as an economic principle. We also discuss the acceptability of the polluterpays principle and compare it with the vickreyclarkgroves mechanism. Under the canadian marine liability act, the polluter is liable for oil pollution from ships, including all reasonable costs related to recovery and cleanup. This work traces the history of the polluter pays principle the ppp in the early economic literature from 1920s. Making the polluter pay foundation for economic education.
The polluter pays principle is an environmental policy principle which requires that the costs of pollution be borne by those who cause it. The polluterpay principle ensures those who are responsible for spills are also responsible for cleaning them up and is designed to keep the cost of response off of taxpayers. The primary function of the principle is that it helps in allocating the costs and repairing the damage, between different stakeholders, for the harm caused by them to the environment. If we were to ask people who fly whether the polluterpays principle should also apply to aviation i. The polluter pays principle is a way of internalising the externality. Precautionary principle and the polluter pay principle 1. The centre was established in 1988 and is a joint venture by the international institute for environment and development iied and university college london ucl. The polluter pays principle is mainly implemented by means of commandandcontrol approaches but can also be applied via marketbased.
The polluter pays principle does not only apply if there is a real pollution in terms of harm or damage to private property andor the environment. The environmental liability directive eld is a law that could, and should, be a powerful tool for putting this into practice, but it is widely underused or, in some cases, unknown. History and evolution of the polluter pays principle. In 1972, the oecd wrote guiding principles concerning. Free allocation violates the polluterpays principle, according to sorrell. In this case, the payment imposed to agents i b y the polluter pay principle exceed the non cooperative cost of pollution for i. The polluter pays principle states that whoever is responsible for damage to the environment should bear the costs associated with it. Commandandcontrol approaches include performance and. The polluter pays rhetoric is still often used, and most americans probably think that current environmental policies make polluters pay. Polluter pays principle prof prabha panth, osmania university 2. The polluter would be the person, company, or other organization whose activities are generating that byproduct. Oecd glossary of statistical terms polluterpaysprinciple. The polluter pays principle is valid, but it needs to be better understood and, ultimately, to be reinstated under institutionalarrangements that make it effective and fair. Pdf emissions trading and the polluterpays principle.
Characteristics of environmental goods environmental goods are public goods. The polluter pays principle means that the polluter should be charged. Polluter pays principle the polluter pay s principle ppp is one of the internationally recognized principles that influence the environmental legislation, management and economics in. The polluter pays principle is normally implemented through two different policy approaches. Entin was a staff economist with the joint economic committee of the congress, where he developed legislation for tax rate reduction. Polluter pays principle financial definition of polluter. Jul 02, 2012 the polluters pays principle is the commonly accepted practice that those who produce pollution should bear the costs of managing it to prevent damage to human health or the environment. The spill cost recovery regulation under the environmental management act ema outlines the process and parameters for recovering costs for responding to spills. All of these factors combine to suggest that identifying the source of. Abstract we consider the problem of regulating an economy with environmental pollution. The principle to be used for allocating costs of pollution prevention and control measures to encourage rational use of scarce environmental resources and to avoid distortions in international trade and investment is the socalled polluterpays principle. The ppp has been mentioned as one of the principles in many regional and international conventions.
The principle means that the polluter should bear the expenses of. If we accept the general principle that the polluter should pay, then we recognize that broad, driftnet emissioncontrol strategies are illconceived. Polluter pays principle how is polluter pays principle. Guide to understanding the canadian environmental protection. The polluter pays principle is logical and simple those who cause pollution and environmental damage should be responsible for rectifying it. Successive manmade disasters have seen the eu adopt rules to enforce the polluter pays principle on companies responsible for major environmental damage. Polluter pays principle in italiano ingleseitaliano. Regulation, polluterpays principle, responsibility for pollution impact, externalities.
Pdf the polluter pay principle and the damage done. Cabinet has approved the polluter pays principle as part of efforts to generate additional revenue for environmental management, vice president john mahama, has announced. Caselaw of the court of justice european commission europa eu. Cabinet approves polluter pays principle ghana business news. Regulation, polluter pays principle, responsibility for pollution impact, externalities. Polluter pays principle law and legal definition uslegal. The polluter pays principle is one of the oldest principles of environmental law and also one of the most intuitive. Pdf over the years, the polluter pays principle has developed into a strong basis for eu policy making. The polluter pays principle is one of the central guiding principles of the ospar convention and requires that the costs of pollution prevention, control and reduction measures must be borne by the polluter. Putting the polluter pays principle into practice clientearth. Sep 17, 2015 the polluter pays principle is logical and simple those who cause pollution and environmental damage should be responsible for rectifying it. Interpretation a correct interpretation of the polluter pays principle would define pollution as any byproduct of a production or consumption process that harms or otherwise violates the property rights of others. The article begins with economists ac pigou, av kneese, and others, and proceeds through legal developments, including the 1968 draft declaration of principles on air pollution.
Alongside, the polluter pays principle was emphasised. For instance, a factory that produces a potentially poisonous substance as a byproduct of its activities is usually held responsible for its safe disposal. The polluter pays principle has been held to be a sound principle by this court in indian council for enviro legal action v. Precautionary principle and the polluter pay principle.
This principle, which is intuitively sensible, was trumpeted by early environmentalists as a means to discourage environmental harms. Mar 07, 2015 precautionary principle and the polluter pay principle 1. The polluter pays principle is one of the central guiding principles of the ospar convention and requires that the costs of pollution prevention, control and reduction measures must be borne by the polluter the polluter pays principle is mainly implemented by means of commandandcontrol approaches but can also be applied via marketbased. Epr is a clear bastardization of polluter pays and shouldnt be mentioned here. For instance, a factory that produces a potentially poisonous substance as a byproduct of its activities is usually held. The polluterpays principle is the principle according to which the polluter should bear the cost of measures to reduce pollution according to the extent of either the damage done to society or the exceeding of an acceptable level standard of pollution. By combining a microeconomic analysis of law with an analysis of the nature of. Thus, in supporting the beneficiary pays principle in general, and the polluter pays principle in some cases, i challenge interpretations of cbdr which maintain that backwardlooking principles are unfair, since they impose duties upon present day generations.
Although, i would say that it is the of use of the word polluter here that is more confusing. Interpreting the polluter pays principle in the trade and. Forcing hundreds of small businesses to file extensive environmental reports makes little sense if the actions of only a few are causing environmental problems. Jun 24, 2014 the polluter pays principle ppp is an environmental policy principle which requires that the costs of pollution be borne by those who cause it. The polluters pays principle is the commonly accepted practice that those who produce pollution should bear the costs of managing it.
Polluter pays principle is a globally well recognized and a much celebrated environmental law principle. On the polluterpays principle stefan ambec lars ehlersy february 9, 2010 preliminary and incomplete version. Polluter pays is the only principle that can limit. Reversing an earlier lower court decision, the inner house ruled last week that the joint liquidators of a scottish company could not abandon that companys heritable property, in effect mines and quarries, so as to avoid significant cleanup. The oecd recommended the ppp as the guiding principle concerning the international economic aspects of environmental policies in 1972. Reversing an earlier lower court decision, the inner house ruled last week that the joint liquidators of a scottish company could not abandon that companys heritable property, in effect mines and quarries, so as to avoid significant cleanup and restoration costs.
The polluters pays principle is the commonly accepted practice that those who produce pollution should bear the costs of managing it to prevent damage to human health or the environment. Polluter pays is the only principle that can limit aviation emissions. Interpretation of polluter pays principle ppp in india. Dec 08, 2017 alongside, the polluter pays principle was emphasised. The polluter pays principle as it is currently being advocated ends up being a wealth transfer from nonpolluters to politically well connected nonvictims.
In this case, the payment imposed to agents i b y the polluterpay principle exceed the non cooperative cost of pollution for i. This is not because their laws are explicitly or implicitly based upon different models of the polluter pays principle as such. Implementation of the polluterpays principle white rose. On the polluter pays principle stefan ambec lars ehlersy february 9, 2010 preliminary and incomplete version. It makes the firmconsumer pay the total social cost, rather than just the private cost. Muhammad munir has posted history and development of the polluter pays principle, an article tracing the history of the ofteninvoked principle in economic and legal thought. A property rights based polluter pays principle, if implemented, would solve many of these problems by enforcing existing property rights and providing principled guidance for the. The 1987 report greatly influenced the rio earth summit of 1992, which, for the first time, explicitly enshrined the polluter pays principle. The polluter pays principle is the principle according to which the polluter should bear the cost of measures to reduce pollution according to the extent of either the damage done to society or the exceeding of an acceptable level standard of pollution. Polluter pays principle, we investigate this environmental injustice. In event of a spill, the first point of contact is the canadian coast guard emergency line, which is 18008898852. The polluter pays principle ppp is an environmental policy principle which requires that the costs of pollution be borne by those who cause it. The principle, under the governments revised environmental sanitation policy, will provide opportunity for waste generators to contribute to sustainable financing of waste management.
The 16th of the 27 principles enshrined in the rio declaration on environment and development outlined this as, the approach that the polluter. Polluter pays is also known as extended polluter responsibility epr. The court observed, we are of the opinion that any principle evolved in this behalf should be simple, practical and suited to the conditions obtaining in this country. This imposes a charge on the emission of greenhouse gases equivalent to the corresponding potential cost caused through future climate change thus forcing emitters to internalise the cost of pollution. At the outset, the polluterpays principle had been devised largely in the context of. Processes, procedures and policies various companies ppp. Companies or people that pollute should pay the costs they impose on society.
Simon caney has recently defended a hybrid view, which includes versions of both of these principles. Hayek discusses polluter pays principle ppp with students at stanford in the 1970s, in inside the hayek equation. The polluter pays principle is the commonly accepted practice that those who produce pollution should bear the costs of managing it to prevent damage to human health or the environment. Implementation of the polluter pays principle example of.
Discussions of where the costs of climate change adaptation and mitigation should fall often focus on the polluter pays principle or the ability to pay principle. The polluter pay principle david pearce london environmental economics centre this gatekeeper series is produced by the london environmental economics centre leec. The polluterpays principle means that the polluter should be. Explanation this is a basic economic principle currently being adopted in legislation by many countries that requires the producers or generators of pollution to pay for the costs of avoiding pollution or of cleaning up or remedying its effects.
In its original emergence the polluter pays principle aims at determining how the costs of pollution prevention and control must be allocated. Hot off the press, we have the inner house of the court of session decision on what is referred to as the scottish coal case. Pdf this article traces the evolution of polluterpaysprinciple ppp as an economic, ethical and legal instrument and argues that it has the. The polluter pays principle is not a principle of compensation for damage caused by pollution.
Superfund is a policy under which polluters and nonpolluters alike are forced to pay exorbitant sums. In the light of the precautionary principle, environmental legislation may also provide for measures which are taken to. Implementation of the polluter pays principle example of planning for decommissioning s. The polluter pays principle underpins environmental policy such as an ecotax, which, if enacted by government, deters and essentially reduces greenhouse gas emissions. After all, making the polluter pay for its wrongs makes sense on both. In event of a spill, the first point of contact is the canadian coast guard emergency line, which is 1.
In the environmental law, the polluter pays principle refers to the principle that if pollution occurs, the person or organization that causes pollution should pay for the consequences of the pollution and for avoiding it in future. We also discuss the acceptability of the polluter pays principle and compare it with the vickreyclarkgroves mechanism. The polluter pays principle can be applied to greenhouse gas emitters through a socalled carbon price. Polluter pays principle financial definition of polluter pays. The polluterpays principle is not a principle of compensation for damage caused by pollution.
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