Environmental Economics Essay Example | Topics and Well Written Essays - 1000 words - 4

Environmental Economics - Essay ExampleThis paper compares Command-and-Control and Economic inducing approaches.Command and control regulations focus on preventing environmental problems by specifying how a company will parcel out a pollution-generating process (Stuart) In this type of approach to regulation of pollution, the companies which are responsible for pollution should discover necessary precautions to prevent the environment pollution due to their activities. For example, industrial units just aboutly produce lot of ototoxic gases and solid wastes which generally they disposed to the land or sea improperly. Waste treatment plants are do compulsory with every industrial unit by implementing Command and control regulations. Command and control approaches were rough-and-ready up to certain extent to reduce the industrial pollution. Periodical inspections from the governmental agencies forced the industrial units to remark tight control over the polluted materials it g enerated.Economic incentive approach is the way of controlling environmental pollution by offering economic incentives. In this approach, those who take effective measures to control environmental pollution will be rewarded and strict penalties will be enforced for those who destroy the environment. Pigovian Taxes, emission fees, abatement subsidies and tradable earmark system are some of the common methods taken in the Economic incentive approach.Pigovian Taxes is a amiable of special tax that isoften levied on companies that pollute the environment or create excess kind costs, called negative externalities,throughbusiness practices. In a true market economy, a Pigovian taxis the most efficient and effectiveway to correct negativeexternalities (Pigovian Tax) The main objective of this tax is to incorporate the well-disposed cost of the environment problems caused by the polluter. Thus the polluters will be forced to control their polluting activities because of the fear of the to a great extent Pigovian