Equivocating on the polluter-pays principle: The consequences for Pakistan

Abstract

The polluter-pays principle has been widely implemented in OECD countries and credited for bring about a significant reduction in pollutant discharge. However, it has had only limited implementation in developing countries. The consequences of not implementing it in developing countries, to the extent they are documented, are limited to estimating the economic damages of environmental degradation. Yet there are several other but seldom documented negative consequences of the failure to implement the polluter-pays principle. These consequences are documented in the case of Pakistan. They include limited construction of effluent treatment plants, heavy dependence on the government and international donors for funding the only two operational common effluent treatment plants, significant operational issues at the two common effluent treatment plants, missed opportunities to build cost-effective common effluent treatment plants and minimal environmental improvements from isolated investments in individual effluent treatment plants in addition to the already documented significant level of environmental degradation due to uncontrolled pollutant discharge.