What is Environmental Policy?
Environmental policy refers to any course of actions that is deliberately take (or refrained from) to manage human activities to prevent or mitigate harmful effects on natural resources, the ecosystem or nature.
Environmental policy is comprised of two dominant terms: the environment and policy. This term, when broken-down can be understood—environment refers to the ecological dimension or ecosystems, but also takes into account the quality of life and the ability to manage our resources.
What does Environmental Policy Cover?
Those environmental issues addressed by environmental policy will typically include, but are not limited to the following situations, subjects and circumstances: air and water pollution, ecosystem management, waste management, biodiversity protection, and the protection of wildlife, endangered species and natural resources.
What is the reasoning behind Environmental Policy?
The rationale behind environmental policy and more specifically the reason why a governing body is involved in environmental regulation is centered on market failure in the form of externalities, including the tragedy of the commons as well as the free rider problem. An example of these economic situations can be elucidated upon in a factory example.
To execute and implement efficient environmental policy, governments will use a number of different instruments, including economic incentives and various market-based instruments such as taxes and tax exemptions, tradable permits and fees to encourage compliance with the established environmental policy.