Market-Based Incentives

Improving quality and ecological sustainability of natural resources in international supply chains The role of market-based incentives 333... 

Keywords ecological sustainability, quality, market-based incentives, small-scale producers... 

Whilst a general consensus on the need for environmental protection now exists, the debate continues over the forms which environmental control measures should take, and in particular on the fundamental choice between direct regulation on the one hand, and market-based incentives on the other. This has implications both for the overall costs and benefits of policy implementation, and for the impact of legislation on individual companies. 

Incentive- based Customers and consumers influence markets based on information provided directly in registers or as labels. Pollution registers, eco-labels. 

Faundez P (2008) Renewable energy in a market-based economy how to estimate its potential and choose the right incentives. Renew Energy 33 1768-1774... 

Upon hearing the term market-based approaches to (or economic incentives for) environmental protection, some people assume this means letting unfettered competition between unregulated private firms determine how clean our air or water will be, how much open space we will have, or how many fish stocks will be driven to collapse,... 

Given the very necessary government role in protecting the environment, the real question becomes how best to do this. Market-based approaches to environmental protection are premised on the idea that it is possible to confront private firms, individuals, and even other levels of government with the same kinds of incentives they face in markets for labor, capital, and raw materials—that is, prices that force them to economize. The rationale for market-based approaches, in other words, is to try to put the powerful advantages of markets to work in service to the environment. 

Success in meeting this vision requires the implementation of different facets such as regulatory obligations, market based benefits (economic, fiscal or volimtary) and Government incentives as set out below. 

The share of secondary refined lead should continue to rise in the foreseeable future. Firstly, for environmental reasons, governments in a growing number of countries will require that a higher proportion of used, scrap batteries are recycled, rather than simply being dumped. This enforced recycling may increasingly displace the market-based, economic incentives... 

A projection of biomass energy consumption in the United States for the years 2000, 2010, 2020, and 2030 is shown in Table 6 by end use sector (12). This analysis is based on a National Premiums Scenario which assumes that specific market incentives are appHed to aU. new renewable energy technology deployment. The scenario depends on the enactment of federal legislation equivalent to a fossil fuel consumption tax. Any incentives over and above those in place (ca 1992) for use of renewable energy will have a significant impact on biomass energy consumption. 

EJ = 0.9488 X 10 Btu. Assumes market incentives of 2 /kWh on fossil fuel-based electricity generation, 2.00/10 Btu on direct coal and petroleum consumption, and 1.00/10 Btu on direct natural gas consumption. 

By-Products. The PUREX process is efficient at separating uranium and plutonium from everything else in the spent fuel. Within the high level waste stream are a number of components which have, from time to time, been sufficiendy interesting to warrant their recovery. The decision to recover a particular isotope is usually based on a combination of market incentives and desired waste reduction. 

While these different pohcies vaiy broadly in form, their objective is essentially the same to substitute flexible economic-incentive systems for the current rigid, technology-based regulations that specify exactly how companies must comply. These market mechanisms have made regiilating easier for EPA and less burdensome and costly for industiy. 

Industry restructuring advocates believe that a competitive market will create incentives to operate more efficiently and make better economic investments in utility plant and equipment. In contrast to a competitive market, cost-based ratemakmg does not generally reward utilities with a higher return for making an especially good investment in plant and equipment, or penalize them for making an especially bad investment. The return that a utility... 

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