Make Polluter's Pay the Price of Managing Pollution

POLLUTER PAYS PRINCIPLE


The polluter pays principle (PPP) states, whoever is responsible for damage to the environment should bear the costs associated with it.

Polluter pays is also known as Extended Producer Responsibility (EPR). This is a concept that was probably first described by Thomas Lindhqvist for the Swedish government in 1990. EPR seeks to shift the responsibility dealing with waste from governments (and thus, taxpayers and Society at large) to the entities producing it.
EPR internalizes the cost of waste disposal into the cost of the product. This would force the producers to decrease waste and increase possibilities for reuse and recycling.

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. For Instance, a factory that produces a potentially poisonous substance as a byproduct of its activities is usually held responsible for its safe disposal.

Part of a set of broader principles to guide sustainable development Worldwide (formally known as the 1992 Rio Declaration), the
Polluter pays principle is applied more specifically to emissions of greenhouse gases which cause climate change.

Greenhouse gas emissions are considered a form of pollution because they cause potential harm and damage through impacts on the climate. However, in this case, because society has been slow to recognize the link between greenhouse gases and climate change, and because the atmosphere is considered by some to be a 'global commons (that everyone shares and has a right to use), emitters are generally not held responsible for controlling this form of pollution.

However, it is possible to implement the polluter pays principle through the so-called carbon price. Carbon price imposes a charge on the emission of greenhouse gases equivalent to the corresponding potential cost or damage caused through future climate change. In this way, a financial incentive is created for a factory, for instance, to minimize its costs by reducing emissions.
Many economists argue a carbon price should be global and uniform across countries and sectors so that polluters do not simply move operations to so-called 'pollution havens' – countries where a lack of environmental regulation allows them to continue to pollute without restrictions.

Few people could disagree with the proposition that those who cause damage or harm to others should "pay" for those damages. It appeals directly to our sense of justice.

Forcing polluters to bear the costs of their activities is also said to enhance economic efficiency. Appropriately applied, policies based on a polluter pays principle (PPP) should enable us to protect the environment without sacrificing the efficiency of a free market economic system.

The polluter pays principle needs to answer four questions:

1. What constitutes pollution?
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.

2. Who are the polluters?
The polluter would be the person, company, or other organization whose activities are generating that by-product. For instance, the polluter can be the organizations that are responsible for damaging the environment – in cases such as gas/oil leaks.

3. How much must the polluters pay?
The amount of payment should equal the damage or potential damage. For instance, oil spills can create current as well as potential damage to the marine resources.
In November 2012, British Petroleum agreed to pay US$4.5 billion (1 billion = 1000 million) to the US government as compensation for the 2010 Deep water Horizon oil spill. The London-based oil giant pled guilty to 11 felony counts relating to the deaths of 11 men who were killed in the explosion in the Gulf of Mexico. The payout sets a new record in criminal fines.

4. To whom they must make the payment?
The payment for the damage is to be made to the person or persons being harmed. For instance, the payment of damage could be made to the Govt. Since it is the responsibility of the Govt. to take care of affected persons, and to repair the damage.

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