|
The purpose of this study is to fine out the alternatives for solve to problems of environmental quality and to show the recommandations for the improvement of environmental policy. More specifically, this study emphasis on : Firstly, indentifying the cause of environmental problems : Secondly, exploring the economic historical researches of environmental problems : Thirdly, defining the basic conception of environmental economics : Fourthly, researching the took of economic analysis : Fifthly, analyzing the alternatives for solve to environmental problems : ○ The basic cause of the problem is economic in nature-the failure of the market system to allocate environmental resources efficiently. Also, the choices we must make in undertaking to improve environmental quality are economic ones. ○ Viewed as an economic problems, the problem of environmental degradation is the result of the failure of the market System to efficiently allocate environmental resources among their alternative uses. ○ The other source of market failure is the public goods nature of many of the environmental services. A public good, once supplied to one individual by its very nature is freely available to all. Since other users cannot be excluded because of nonpayment of the price, producers of public good are unable to collect revenues from beneficiaries. ○ The tools of economic analysis are designed to aid our understanding of how economic resources-human resources, capital and land-are allocated among competing uses in a market economy. ○ The optimun lever of pollution control occurs where the total cost of residuals disposal is at a minimum. The total cost of residuals disposal is the sum of damages and treatment costs. As a result the alternatives for solve to problems of environmental quality have been noted and those alternatives are explained as follows : 1. The solution through market system requare the existence of property rights for environmental resources and the contractual agreement of producers and consumers. 2. The effluent-charge approach has characteristic that recommends is over the regulatory approach. A firm has no incentive to cut pollution further once it has achieved the effluent limitation specified by regulation. Indeed, it has a positve incentive not to do so, since the additional reduction is costly and lowers profits. Because effluent charges must be paid for every unit of pollution firms have not removed, they would have a continuing incentive to devote research and engineering talent to finding less costly ways of achieving still further reductions. This continuing incentive in important. 3. The prohibitory approach suffers from an inescapable dilemma. If the system is simple enough to be handled by a central bureaucracy, as one might have thought was true for the uniform treatment strategy, it is bound to be very inefficient. But if it seeks to accommodate the tremendous diversity of the economy, and tries to devise effluent standards that minimize costs, the prohibitory task becomes insurmountable. Throughout this a study we used the issue of environmental control to illustrate the failures of the traditional legislative approach to policy formulation and to suggest the kinds of changes that are needed. Our recommendations for reform can be briefly summarized. Government can longer get by on political skills alone. It must supplement those skills with staff resources competent to provide the technical and analy help that is absolutely essential in dealing with difficult social issues. Far more than in the past, legislative action nust emphasize the creation of new incentives and new institutions that harness the self-interest of individuals and business firms toward socially desirable goods.
|