CSEET · Economic and Business Environment · Environmental Governance
The 'polluter pays principle', accepted in Indian environmental governance, means that:
The polluter pays principle means the person or enterprise causing environmental pollution must bear the cost of remedying the damage and of preventing it. It internalises the negative externality, so society and the state are not left to pay for harm created by the polluter.
- AThe party causing pollution should bear the cost of remedying the damage and preventing itCorrect
- BThe government alone must pay for all environmental clean-up
- CConsumers of polluting goods must bear all pollution costs equally
- DOnly foreign companies are liable for pollution damage
Explanation
The principle internalises the externality: the one who causes environmental harm bears the cost of restoration and prevention. Making the government or consumers pay would shift the burden away from the polluter, contradicting the principle.
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