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Global Environmental Policies Essay

With hindsight we can see that these countries simply lacked many of the prerequisites for an effective market-based approach.And we should keep in mind that in many ways these countries are stronger candidates for market strategies than are the developing countries.However, the donors have rarely asked whether the approaches they are urging, which have recently had some success in Europe and the United States, can be implemented effectively in developing countries with limited resources and little experience with market-based policies of any kind.We worry that these highly sophisticated instruments have been pushed too hard and too fast, and that those who promote them say little about the context and conditions in which they thrive.A variation of this system was eventually written into law to create the best-known and most successful U. Starting in January 1995, the electric power industry in the eastern third of the nation was allocated a fixed number of total “allowances.” The rules allowed firms to bank allowances for future use, buy allowances to meet regulatory requirements rather than reduce emissions, or sell excess allowances.Rigorous checks and balances built into the program ensure compliance, system credibility, and integrity.

Demonstration emissions-trading and transferable-permit systems with a handful of managed trades were actively pursued in Kazakhstan, Poland, and the Czech Republic.

Although incentive-based approaches to environmental control were being developed by economists in the early 1970s when many of the basic environmental laws were being written in the United States, none of the early laws used economic instruments.

Market-based tools began to make inroads in the 1980s when regulators at the U. Environmental Protection Agency (EPA) saw that they could be useful in dealing with difficult Clean Air Act implementation problems.

Ultimately, they have become pay-to-pollute schemes whose revenues support government environment agencies..

After the fall of communism, the multilateral development banks and the Western industrialized countries promoted market-based instruments to a Central European audience eager for alternatives to central planning.


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