Global Environmental Policies Essay

Global Environmental Policies Essay-2
The targets of this advice should be better informed about everything they would need to do to make market-based instruments work.Otherwise, the cause of environmental protection itself may be dealt a blow when ill-conceived policies divert a country’s energies without producing the desired result.They seemed the right targets for this message, as they are in most respects “developed” industrialized economies rather than “developing” countries.

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Each stack at each regulated facility had been given a discharge permit.

The EPA innovation allowed firms to trade those permits internally and externally, so that expensive-to-control sources could emit more and cheap-to-control sources would be encouraged to cut back. To control acid rain, Title IV of the 1990 Amendments to the Clean Air Act established tradable emission allowances for sulfur dioxide.

An elaborate Slovak system is scheduled to begin in 2002.

But these were only experiments, and they did not deliver on their promise of enabling these countries to avoid the mistakes committed in the name of environmental protection in the West.

With hindsight we can see that these countries simply lacked many of the prerequisites for an effective market-based approach.

And we should keep in mind that in many ways these countries are stronger candidates for market strategies than are the developing countries.Utility companies are pleased that they, rather than the government, decide the most cost-effective way to comply.Although much is made of the success of this program, the reality is that most U. environmental programs continue to use traditional regulation because the alternatives pose significant technical and political challenges.Many in the public interest community oppose economic instruments because they fear that emissions trading cannot be adequately enforced.Some think that market-based approaches provide excuses for polluters to avoid responsibility A lesson from this brief history is that market-based instruments have been applied gradually and cautiously in the most mature environmental protection regime, the United States.Most developing countries have long since established laws and formal governmental structures to address their serious environmental problems, but few have been successful in alleviating those problems.The development banks, which control resources desperately needed by the developing countries, are promoting the use of economic incentives and other market-based strategies as the key to more effective environmental protection.Most of these innovations are aimed at raising revenue for infrastructure investment rather than encouraging pollution reduction.Charge levels, set too low to provide an incentive for discharge reduction, instead guarantee a fairly regular income stream.Developing-world regulators, already marginalized in their own countries, will have little to show for their efforts in terms of a cleaner environment. What have we learned about the conditions necessary for effective market-based policies?Before imposing a regulatory strategy on the developing world, we should review the experience of the industrialized countries and others that have implemented market-based policies. Then we will be ready to consider when and where these policies are likely to work in the developing world.


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