ENVIRONMENTAL POLICIES (Policy Tools)

• Two major policy tools for protecting the environment are laws and inducements.
• Laws are in the form of Legislations made by legislatures in the House of Parliament / Representative .
• Under the Legislations, Rules are made for regulation of activities.
• Such Rules can come in the form of design standards and performance standards. Performance standards specify emission levels and let those covered by the Rules decide how those levels will be met.

Inducements are rewards and punishments used to influence people or groups.

Commonly adopted inducements are market reform of two major types:

• Charge System , e.g. emissions taxes;     
• Tradable Permit System, e.g. auction of pollution rights in which the amount of pollution is set and divided into units, which are then auctioned, giving environmental organizations the opportunity to     buy the units to create a cleaner environment than originally planned.