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Role Of Government Intervention In Environmental Issues

1649 words - 7 pages

Paper #1: Role of Government Intervention in Environmental IssuesIn environmental cases, a policy framework is sometimes moreeffective when there is less government intervention. As the level ofgovernment intervention diminishes, this allows more flexibility forcorporations to achieve efficiency. Furthermore the traditional command andcontrol approach has proven to be costly, bureaucratic and often inefficient.It is important to address the fact that there are numerous benefits thatcan be achieved for both policy makers and industries, if a policy frameworkis based on market forces. However it is important that there is a need forsome government intervention, but should be as minimal as possible.I have chosen to examine the article from the New York Timesentitled RU.S. Seeking Options of Pollution RulesS. Although pollution isdetrimental to our environment, you have to take into account that it isalmost impossible to entirely prevent pollution. This is scientificallyimpossible and it would have severely negative economic impact on theindustries. So the core issue becomes the fact no matter what, there willalways be pollution, as long as these industries exist. So we should focuson how we can minimize this and yet at the same time have an efficient marketsystem? Furthermore, we should also focus on how we can accomplish this sothat sustainable growth and development can take place. So there isdefinitely a need for some form of government intervention to enforce andmonitor this. Reason being that there is always an element of equality thathas to be enforced, when dealing with cases such as this. For instance,larger corporations may have an advantage over smaller corporation, sincethey have stronger influence on politicians and lobbyists. So thegovernmentUs role should be to ensure that all industries (regardless sizeand/or power) have equal opportunities to benefit from this type of approach.In another words, the government should simply be a RwatchdogS.Government should monitor so that the distribution and transaction of thepermits are done in an appropriate manner.The case of Minnesota Mining & Manufacturing Corporation is aclassic example of tradable permit approach. Under this model corporationsare able to buy, sell and trade permits that legally allows emission. Manyeconomists have favored this approach because this also provides incentivesfor technical improvement. So the aggregate effect would be that mostindustries would try to maximize their profits by trying to come up with newtechniques to reduce the level of emission. This in turn would allow them toreduce the cost that they would have to pay from polluting. Norm Miller alsoendorses this approach by stating that Rperformance-based approaches are moreefficient, both for industry and for governmentS.Allowing a company to devise and manage their own pollution controlplan is another effective (and Rde-regulativeS) approach. In the article,this was exemplified in an Arizona based company...

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