Abstract
This article traces the evolution of polluter-pays-principle (PPP) as an economic, ethical and legal instrument and argues that it has the potential of effecting global responsibility for adaptation and mitigation and for generating reliable funding for the purpose. However, the contradiction is that while it rests on neoliberal market principles, the UN Framework Convention on Climate Change did not include the PPP as its provision though the principle of “common but differentiated responsibility based on respective capabilities” (Article 3.1) implicitly recognizes this. The article raises the basic question that under a free-market global system: why should the polluters not take responsibility of their actions so that the global society does not suffer? The Organization of Economic Cooperation and Development (OECD) countries apply this PPP in many of its forms. Some developing countries are also applying it albeit still more as a governmental rather than polluter responsibility. Currently there is an emerging consensus that a carbon tax should be applied globally to address the intractable problem of climate change. Since the problem relates to a global commons, the issue is how to apply the PPP globally yet equitably. This article brings in Caney’s proposal that as complementary to the PPP. The “ability to pay principle” (APP) can take care of emissions of the past agreed by the Parties and current and future legitimate emissions of the disadvantaged countries and groups of people. He calls the latter poverty-sensitive PPP. While PPP is primarily a market principle, APP is a principle of justice and equity. That polluters should pay the social and environmental costs of their pollution reflects the most fundamental principles of justice and responsibility.
Highlights
The fact that atmospheric pollution as a negative externality resulting from human activities into the global commons is accepted universally, without any contestation
There is no consensus about the cardinal principle for solving this intractable problem, i.e., the polluter-pays-principle (PPP).The contradiction is that while it rests on the neoliberal market system for addressing the problem, the UN Framework Convention on Climate Change (UNFCCC) Article 3.1 did not directly include the PPP as its provision, though the fundamental principle of “equity and common but differentiated responsibility based on respective capabilities (CBDR + RC)” implicitly recognizes this
This article attempts to analyze the PPP as an economic, ethical, and legal principle, and show that application of PPP has the potential to take care of the climate change problem, including adaptation that will be needed for sometime to come, even with adequate mitigation on
Summary
The fact that atmospheric pollution as a negative externality resulting from human activities into the global commons is accepted universally, without any contestation. In response to the first UN Conference on Environment and Development in Stockholm in 1972, the PPP was first adopted by the Organization for Economic Cooperation and Development in 1972.The. OECD document contained the following elaborate recommendation [16]: The principle to be used for allocating costs of pollution prevention and control measures to encourage rational use of scarce environmental resources and to avoid distortions in international trade and investment is the so-called “Polluter-Pays-Principle”. Other agreements, such as the North American Free Trade Association (NAFTA), Rio Agenda 21, the 2002 World Summit on Sustainable Development (WSSD) Implementation Plan, the Convention of the Protection of the Alps, and the Protocol on Water and Health endorsed the PPP This instrument can be applied more in a geographical region subject to uniform environmental laws. I will discuss how countries in industrial and developing countries apply the PPP within their domestic contexts
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