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Regulatory Tools
in Environmental
LawNatural Resources andEnvironmental Law
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Available PolicyInstruments(The 5 Ps in EnvironmentalLaw)
Proerty Rights
The Aroach! ta"e away ublic
access to the resources andrivati#e it or create ownershirights
Premise! Peole will ta"e bettercare o$ their rivate roerty
In the Problem o$ the %ommonsthere$ore& a non'owner can nolonger use the $ormerly commonland Instead& use will be limited tothe owners
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Proerty Rights
%an also be used in regulatingshing
Limited eole can e*ercise
shing rights +ishermen will not be ressured
into getting as much as theycan& while they can
,vershing can be revented
by re'determining shing-uotas
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Proerty Rights
%hallenges!
.ow to allocate the resources/
0ho gets what& and why/ .ow to e*clude others $rom
common resources/
0hat to do when e1ciency
con2icts with social goals/
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Prescritive Regulation(%ommand and %ontrol)
Aroach!
Regulators direct behavior o$
regulated arty Premise!
Regulators "now best& has the mostaccurate in$ormation& will not give in
to ressure grous or olitics andhas the monitoring and en$orcementcaacity
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Prescritive Regulation(%ommand and %ontrol)
Alied to the roblem o$ thecommons
Regulators determine& based on
available science the carryingcaacity o$ the land
All gra#ers are then re-uired toabide by the gra#ing limit andother rules
All those who violate rohibitionwill be unished
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Prescritive Regulation(%ommand and %ontrol)
%hallenges!
Premises not true in the Philiines
Regulators do not "now best3have no in$ormation
Regulators sub4ect to ressures&olitical or otherwise
No monitoring and en$orcement
caacity
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Proerty Rights andPrescritive Regulation hybrid
Permit Trading
Aroach !
%reate roerty rights& rescriberegulations& create mar"et
a*imum emissions er installationset
,wners o$ emission ermits can trade The ownershi o$ rights and the
rivilege to trade gives incentives todevelo new technology
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Permits Trading
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Penalties(Internali#ingE*ternalities)
Aroach!
a"e the olluters6destroyers absorbthe environmental costs
Premise!
I$ actual costs to the environmentare assed on to those who will
degrade it& they will avoid degradingthe environment
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Penalties(Internali#ingE*ternalities)
As alied to the commons!
Each gra#er will be ta*ede-uivalent to his6her share in the
cost o$ damage to theenvironment
They may gra#e as much as theywant but they will have to aythe ta*es
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Penalties(Internali#ingE*ternalities)
%hallenges!
%alculating costs to theenvironment
7alue o$ ecosystem services
ismatched scales and theresulting 8race to the bottom9
En$orcement and monitoring
caacity
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Payments
Aroach!
Pay6reward environmentally $riendlybehavior
Premise!
I$ environmentally $riendly racticesare rewarded in an amount more
than an individual can earn $romoverusing the resources&environmentally $riendly behaviorcan be shaed
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Payments
As alied to the commons
:ra#ers who limit their animalsto a denite number will get
government subsidies As a result& there will be more
incentive not to overuse thegra#ing eld as revenues will be8guaranteed9
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Payments
%hallenges
0here would the governmentsource the $unds to subsidi#earticular grous
Possible con2ict with socio'economic ob4ectives
.ow to choose which activities tosubsidi#e and once chosen& how torioriti#e
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Public ;isclosure andPersuasion
Aroach!
a"e the ublic themselves chooseto be environmentally $riendly byeducating them and giving themdirect access to relevant in$ormation
Premise!
An educated and in$ormedciti#enry will decide to do what isbest
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Public ;isclosure andPersuasion
As alied to the commons
All gra#ers6sheherds will bere-uired to reort the number o$
shee they bring Those who 8abuse9 the commons
will be "nown to everyone& basedon the in$ormation
0ith an educated ublic
in$ormed o$ 8abusers9&consumers will re4ect roducts o$the abusers
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Public ;isclosure andPersuasion
%hallenges!
Economic needs6 social ressuremay outweigh 8intelligent choices9in day to day decision'ma"ing
onitoring labels and in$ormationthat may mislead the ublic
<cientic uncertainty