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polluter-pays principle

polluter-pays principle
The polluter-pays principle was first propounded by the OECD in 1972. At that time it simply said that polluters should have to bear the full cost of meeting environmental regulations and standards. No subsidies should be given to help in this process. It has since evolved to become a broader principle of cost internalization—polluters should pay the full cost of the environmental damage that their activities produce. Of course, much of that cost will be passed along to consumers in the price of the goods involved, but this then discourages consumption of more pollution-intensive goods.

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Date of creation
07-Mar-2013
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07-Mar-2013
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