Manag., July-2018 – Q68
- Option : C
- Explanation : This principle underpins most of the
regulation of pollution affecting land, water
and air. Pollution is defined in UK law as
contamination of the land, water or air by
harmful or potentially harmful substances.
Part of a set of broader principles to guide sustainable development worldwide (formally known as the 1992 Rio Declaration), the polluter pays principle has also been applied more specifically to emissions of greenhouse gases that cause climate change.
Greenhouse gas emissions are considered a form of pollution because they cause potential harm and damage through impacts on the climate. However, in this case, because society has been slow to recognize the link between greenhouse gases and climate change, and because the atmosphere is considered by some to be a ‘global commons’ (that everyone shares and has a right to use), emitters are generally not held responsible for controlling this form of pollution.
However, it is possible to implement the ‘polluter pays’ principle through a so-called carbon price. As we’ll discuss in future questions in this series, this imposes a charge on the emission of greenhouse gases equivalent to the corresponding potential cost caused by future climate change. In this way, a financial incentive is created for a factory, for instance, to minimize its costs by reducing emissions.
