1. Approaches to Environmental Policy

2. 1. Command and Control -
The government sets rules and threatens punishment for violations
Commonly used in the US, with much success
Complaints:
Regulations restrict freedom
Regulations cost companies profits

3. 2. Tax breaks -
For businesses and individuals who are environmentally friendly
Ex: reducing emissions
Ex: installing energy efficient products

4. 3. Subsidy - Give away cash or resources to encourage an activity
Controversy:
US coal and oil companies get huge subsidies
Lumber companies get subsidies to log national forests
Mining companies get subsidies to mine on public lands

5. 4. Green taxes - Imposed on companies that harm the environment
Widely used in Europe
Gives companies incentive to reduce pollution
Tax money is used for the cleanup

6. 5. Cap and Trade -
Government determines the amount of pollution it will accept for a particular pollutant and issues permits to polluters for a fraction of that amount.
Permits can be bought, sold and traded.
Ex: I have 10 permits: use 5, sell 5, make $
Ex: I need 5, buy yours, can continue to pollute up to 10 permits and need not reduce my pollution

7. 6. Local incentives -
Ex: rebates on energy efficient appliances Ex: charging residents by how much garbage they put out, encouraging them to generate less waste