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Protecting the environment
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Economic activity can damage the environment. Governments aim to protect it as one of their objectives.
How businesses damage the environment
Visual pollution: litter, ugly buildings, billboards.
Noise pollution: factories, airports, construction.
Air pollution: factory and vehicle emissions.
Water pollution: chemicals and waste in rivers and seas.
Noise pollution: factories, airports, construction.
Air pollution: factory and vehicle emissions.
Water pollution: chemicals and waste in rivers and seas.
Government interventions
Taxation: such as taxes on fuel or landfill.
Subsidies: for cleaner technology, such as renewable energy.
Regulation: limits on emissions or bans.
Fines: for breaking environmental rules.
Pollution permits: a cap on total pollution with tradable permits.
Provision of parks: the government provides green spaces.
Subsidies: for cleaner technology, such as renewable energy.
Regulation: limits on emissions or bans.
Fines: for breaking environmental rules.
Pollution permits: a cap on total pollution with tradable permits.
Provision of parks: the government provides green spaces.
Weighing policies
Taxes raise revenue but may hit the poor hardest. Subsidies cost money. Regulation and fines must be enforced. Permits are hard to set at the right level.
Governments often combine several policies.
Governments often combine several policies.
A city wants to reduce air pollution from buses. Suggest a policy.
- Cleaner buses reduce emissions.
- The government could pay part of the cost.
Answer: Subsidise electric buses.
Businesses cause visual, noise, air and water pollution. Governments use taxes, subsidies, regulation, fines, pollution permits and parks to protect the environment. Each has costs and benefits.
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