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‘Polluter pays’ principle


The ‘Polluter Pays’ principle is based on an economic approach to pollution control designed to ensure that the polluter bears the cost of the pollution damage and/or the costs incurred in controlling the pollution – otherwise known as the abatement costs. The OECD describes it as ‘the principle to be used for allocating costs of pollution prevention and control measures to encourage rational use of scarce environmental resources and to avoid distortions in international trade and investment’. Accordingly, ‘the polluter should bear the expenses of carrying out the above mentioned measures decided by public authorities to ensure that the environment is in an acceptable state. In other words, the costs of these measures should be reflected in the cost of goods and services, which cause pollution in production and/or consumption.’

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