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The second choice leads to economic instruments as incentives to behaviour,
which is outlined in Principle 16 of Rio Declaration on Environment and
Development (Box 1.4).
A third way is information, education, social pressure, training, negotiation, as
well as moral arguments.
Following paragraphs discuss several economic instruments in environmental laws:
1.4.1.1 Taxation
Environmental taxation is based on the principle ‘polluters have to pay for
their implied claim on environmental services’. Taxes may have a revenue-raising impact that aims for collective treatment, instead of being too high to be a
discouragement.
Taxes can sponsor environmental investments besides providing incentives to
decrease waste and pollution.
Taxation can be in the following forms:
(a) Effluent Charges: Effluent charges are monitory charges that are levied based
on the quality and/or quantity of discharge of polluting substance.
(b) Product Charges: Monitory charges levied on products that generate pollution
during manufacturing/consumption.
(c) Tax differentiation: Tax differentiation is a term used to levying different taxed
for eco-friendly manufacturing/product.
(d) Administrative Charges: Administrative charges are fees, paid to the enforcing
agencies towards permits.
1.4.1.2 Loans
Loans in the context of economic instruments for safeguarding environment are
given by government towards product manufacturing with clean technology.
Box 1.4 Principle 16 of Rio Declaration on Environment and
Development
“National authorities should endeavour to promote the internalization of environmental costs and the use of economic instruments, taking into account the
approach that the polluter should, in principle, bear the cost of pollution, with
due regard to the public interest and without distorting international trade and
investment”.
1.4 National and Local Legislation
The second choice leads to economic instruments as incentives to behaviour,
which is outlined in Principle 16 of Rio Declaration on Environment and
Development (Box 1.4).
A third way is information, education, social pressure, training, negotiation, as
well as moral arguments.
Following paragraphs discuss several economic instruments in environmental laws:
1.4.1.1 Taxation
Environmental taxation is based on the principle ‘polluters have to pay for
their implied claim on environmental services’. Taxes may have a revenue-raising impact that aims for collective treatment, instead of being too high to be a
discouragement.
Taxes can sponsor environmental investments besides providing incentives to
decrease waste and pollution.
Taxation can be in the following forms:
(a) Effluent Charges: Effluent charges are monitory charges that are levied based
on the quality and/or quantity of discharge of polluting substance.
(b) Product Charges: Monitory charges levied on products that generate pollution
during manufacturing/consumption.
(c) Tax differentiation: Tax differentiation is a term used to levying different taxed
for eco-friendly manufacturing/product.
(d) Administrative Charges: Administrative charges are fees, paid to the enforcing
agencies towards permits.
1.4.1.2 Loans
Loans in the context of economic instruments for safeguarding environment are
given by government towards product manufacturing with clean technology.
Box 1.4 Principle 16 of Rio Declaration on Environment and
Development
“National authorities should endeavour to promote the internalization of environmental costs and the use of economic instruments, taking into account the
approach that the polluter should, in principle, bear the cost of pollution, with
due regard to the public interest and without distorting international trade and
investment”.
1.4 National and Local Legislation