Polluter pay principle

    The polluter pay principle (PPP) is an environmental policy that requires polluters to pay the cost. Bugge (1996) concluded four advantages of the PPP: economically, it's more efficient; legally, it's more fair to the world and to the people; it pleased international environmental policies; it shows how to arrange costs within a State.

    The PPP was first mentioned in the year of 1972, suggested by the OECD (organization for economic Co-operation and development) and the European community. Where is stated that:" The principle to be used for allocation costs of pollution prevention and control measures to encourage rational use of scarce environment resources and to avoid distortions in international trade and investment is the so-called Polluter-Pays Principle."

    India imbibed the PPP into their Law of land. They believed that the PPP is aim to repairing ecological damage. The main idea is who messed it, who need to pay to clean it up. It actually punished the polluter who made the damage but it still need to be implement properly. The fine is too low for many Co-operations, this situation is also happened in China. The news always report that many factories had very low amount of fine compared with their revenue. It is insignificant. In case of that, these companies are willing to pay the fine without stopping damage the environment.

    But there are still some cons about PPP. First, If the country adopts the PP, production costs might increase, thus the company may lose its competition in the market. Second, since the company lost their previous status in the market, they may be move their factory to a country which don't apply the PPP instead. Third, PPP basically is a tax law, and this tax is based on pollution. Pollution can be measure accurately. Government should invest lots of money on administration fee to measure that. 

Reference
Bugge H. C., 1996. "The principles of polluter pays in economics and law", in Eide E. and van der Bergh R. (eds) "Law and Economics of the Environment", Oslo: Juridisk Forlag, 1996.


 





This is a picture I found online. It indicates pollution equals money. The factories should pay for what they have damaged the environment. 



      




 I arrived at Chicago on Friday. It's snowing today. I noticed that they are many air pollution in big cities. Like vehicle exhaust, industrial waste gas.