Q3. Explain “Polluter Pays Principles”?
Ans. Protection the environment: Business and industry are closely linked with environment and resource utilization. Product process and strategy for eco-friendly technologies throughout the product life cycle and minimization of waste play an major role in protecting environment and conservation of resources.
Companies action: If environmental cost are properly reflected in prices of goods and services the companies and consumer would adjust market behavior in way that would reduce damage to environment, pollution and waste production.
P3 Approach:Price signal will also influence behavior to avoid exploitation of natural resources. Such measures would facilitate the approach of ” Polluter Pays Principle”
Removing subsidies that encourage environmental damage is another measure.