The pollution permits have a negative effect the valley of

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Reference no: EM13477747

Predict the effects of pollution permits on poor, less-developed areas like Brazil's "valley of death."

The pollution permits have a negative effect the valley of death areas because it

1. It is so difficult to tell or know the number of permits to issue to the industries that have applied because it may allow too many industries in a small area thereby increasing pollution levels

2. It is also hard to quantify the pollution levels and also the chance of falsifying the pollution levels is high

3. The Administration costs of implementing the policies of controlling pollution is very high

Assess the effectiveness of incentive programs on manufacturers in less-developed areas.

Incentive

Example

ADVANTAGES AND DISADVANTGES

Reduction of Pollution Charges and Taxes

  • Emission fee
  • Solid waste
  • Sewage fee

Pros: It helps stimulate technology to a higher level

And also important when damage per unit varies with the quantity of pollution

Cons: It requires real monitoring data for the sake of correct reporting

Input or Output Tax and fees

  • Carbon tax
  • Fertilizer tax
  • Water user fee

Pros: It is simple to manage and doesn't require monitoring data

Cons: It is uncertain environmental effects

Marketable Permits

  • Emissions
  • Effluents
  • Fisheries access

Pros: provides control or a limit to pollution levels since it is easy to quantify levels of pollution

Cons: potentially high transaction costs; requires variation in marginal control costs

Based on your assessment, provide an argument in support of either pollution permits or incentive programs.

Reference no: EM13477747

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