Polluter Pays Principle
Definition
The party producing pollution should bear its costs. Codified in many environmental laws and underpins Pigouvian taxes.
Example
Charging firms for permits to emit CO₂ embodies this principle.
The party producing pollution should bear its costs. Codified in many environmental laws and underpins Pigouvian taxes.
Charging firms for permits to emit CO₂ embodies this principle.