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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