Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.
Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.
As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.
In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.
Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.
As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.
In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.
Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.
Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.

Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.
As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.
Polluter-Pays Principle Explained

The ‘polluter pays’ principle which is a part of the basic environmental law of
the land requires that a polluter bear the remedial or clean up costs as well as
the amounts payable to compensate the victims of pollution.

As explained by the Supreme Court, this principle does not only requires the
polluter to compensate the victims of the pollution but also requires her to
foot the bill for remedial costs to restore the damaged ecology.

In February 1992 the Union Government published its policy for the abatement
of pollution. This statement declares the objective of the government to
integrate environmental considerations into decision-making at all levels. To
achieve this goal, the statement adopts fundamental guiding principles,
namely, (i) prevention of pollution at source; (ii) the adoption of the best
available technology; (iii) the polluter pays principle; and (iv) public
participation in decision making.

Market based incentives follow the ‘polluter pays principle’. As the costs of
creating pollution rise due to the play of market forces, the rational polluter
has an economic incentive to reduce the pollution. The benefit of market-
driven reform is that the polluters will reduce their emission levels where the
imposition of controls is least costly.

Environmental markets create incentives to develop innovative and affordable

pollution control technology. The polluter will develop the technology or
modify the production process to emit less pollutant and correspondingly
retain more money. By contrast, command and control laws encourage
polluters to evade or thwart the regulations or else bribe their way out of
complying with them because it is cheaper to do so. Moreover, industry is
placed in a reactive rather than proactive role in regard to the development of
pollution control technology.