2 Flashcards
1
Q
Command and Control
A
- Traditional approach to environmentally friendly legislation
- Highly specific, centralised and rigidly enforced
- May specify emission control technology and define compliance at “end of piper”
- Concern that rigidity of regulation and enforcement may work against innovative approaches to sustainable practices
2
Q
Economic Instrument?
A
- Works by attaching a price to using the environment
- The value of enviro assets are then allowed for in the production process in the same way as other inputs
- Producers are given choice between investing in pollution abatement or paying to pollute enviro
- If there is competition for sales much of the cost will be passed on to the consumers in the form of higher prices
- Aims to reduce the interference of traditional command and control regulations allowing markets to work for the environment
3
Q
Advantages of Economic Instruments?
A
- Cost Effectieness
- Innovation
- Flexibility
- Information
- Public Revenue
4
Q
Examples of Economic Instruments?
A
- Emission Charges
- Tradable Permits
- Product Charges
- Legal Liabilities
- Subsidies
