Economic incentive instruments

Variable classification is the essential tool for the design or revamp of monitoring systems. After fixing the degree of required knowledge of the process, that is to say, the subset of variables that must be known, this technique is repeated until the selected set of instruments allows us to obtain the desired information about the process. There is a great economic incentive for robust classification because a deficient procedure will require the installation of extra instrumentation. 

Regulatory chemical risk control measures can be broadly separated into four categories command and control, economic, incentive-based, and voluntary initiatives [29]. Brief explanations and examples of these various control instruments are shown in Table 1.2 and are discussed in detail in the Literature Review (Section 2.3). 

In a second step the risk potentials should be decreased by reducing. specific risk sources or by prohibiting them completely. Regulatory procedures are suitable, e.g., limitation of quantities by environmental standards and a rather economic incentive. system by means of certificates. In. some ca.ses the use of endangering liability is appropriate. As mentioned above, instruments of technical procedures and capacity-building are nece.ssary. 

The argument put forward here is that die promotion of organic agriculture requires policy instruments in addition to those based on legal regulation and economic incentives. Other social mechanisms have to be considered and they may involve several types of communication between public administration, farmers and organisations and firms within the field of agriculture and food production/consumption. 

Industry and Business. There is very htde economic incentive for private industry to conduct radio astronomy research for scientific gain. However, a small specialized group of companies works with the large government-funded observatories to construct new radio telescopes or to refurbish older ones. The physical structure of such large instruments requires mechanical engineering expertise to properly construct them, and several companies have found an economic niche supplying this expertise. 

Is based on consolidating a culture of risk prevention, through combining a variety of political instruments - legislation, the social dialogue, progressive measitres and best practices, corporate social responsibility and economic incentives - and on building partnerships between all the players on the safety and health scene. 

Carbon taxes are dynamic economic instruments that offer a continuum incentive to reduce emissions. In fact, technological and procedural improvements and their subsequent efficient diffusion lead to reductions in tax payment. In addition, trading systems are able to self-adjust because emission goals will be easier to meet there will be a decrease in permits demand and in their price but not as rapidly as taxes. 

Economic growth ultimately depends on the production of new ideas, yet a competitive market is unable to offer suitable incentives for the production of such ideas.2 Patents are not the only mechanism that society has developed to meet this need for new ideas governments have attempted to promote the production of innovation by means of public subsidies. However, both these instruments give rise to inefficiencies, as we will see below. 

From an economic perspective both the compulsory and promoting elements of activation contribute to a strengthening of work incentives, return from employment relative to benefit receipt and - in the end - imply a behavioural change. In all countries, activation instruments such as integration contracts or activation programmes incorporate both demanding and enabling elements simultaneously. 

Cased) Vj—(p + 7j)>0 and p + Ii) — A Pi<0 In this intermediate range there are incentives under the producer-level tax to introduce the chemical within the locality, but inadequate additional benefits to justify another level of complex regulation. In this case quantity-based restrictions ( zoning ) may be introduced in order to avoid both chemical accumulation and non-economical regulation. The introduction of this instrument is based on the assumption that it will be less costly to distinguish between different types of chemical in users hands than it would be to distinguish between the point of acquisition of the same chemical. 

Aside from regulatory means, incentives for transport avoidance and traffic deflection can also be achieved by economic instruments. It has been estimated that consistent application of the polluter pay principle, which requires internationalization of external costs, would add to transportation costs. These are low estimates as they take no account of important external costs such as the effects of climatic change. 

The latter could be implemented by requiring delay times after application for a building demolition permit. Economic instruments for this phase would include increasing the cost of disposal of demolition waste and providing incentives, perhaps in the form of subsidies, for entities that set up deconstruction, recycling, and/or materials reuse businesses. Information instruments could include Eco-Labelling schemes that have as one of their criteria the ability to disassemble products into recyclable materials. 

Many of the cases analysed in this study, were the direct or indirect response to the adoption of the EMAS regulation. EMAS is considered by the chemical companies an effective means to stimulate enviromnentally-related innovations. Indeed, it forces companies to make an analysis of the production processes and to individuate any possibility for improvement. However, it is considered an expensive instrument, especially for small firms. In Italy, the compliance to this rule is mainly caused by the inefficiency of the Italian bureaucracy. As a matter of fact, companies which adhere to EMAS obtain a certificate that gives proof of the adjustment to the normative and an effort to constant improvement. By adopting this approach, firms hope to reduce problems which are mainly connected to bureaucratic reasons. The high costs that firms incur in adopting the EMAS initiative, however, often require further incentives to make it economically effective. 

---