Biologists would analyze subsequent impacts to aquatic flora and fauna from increases in water turbidity. In the U. Numerous state laws have echoed these mandates, applying the principles to local-scale actions. The upshot has been an explosion of documentation and study of environmental consequences before the fact of development actions. In England and Wales the Environment Agency EA ,  formed in , is a public body for protecting and improving the environment and enforces the regulations listed on the communities and local government site.
The agency was set up under the Environment Act as an independent body and works closely with UK Government to enforce the regulations. From Wikipedia, the free encyclopedia.
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Environmental Sciences provides an integrated and interdisciplinary approach to understand and mitigate hazards arising from anthropogenic and natural activities by focusing on key areas of environmental chemistry, earth sciences, environmental engineering, atmospheric sciences, and sustainable systems.
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We discuss the two theories primarily from the perspectives of policy makers and innovators asking the question what guidance they have to offer in the quest for effective innovation policies. The behavioural view has been very much neglected in the literature on environmental innovation. We shall cover it extensively and argue that it offers a more fruitful approach to environmental innovation than evolutionary theory and a sharper view on how incentives work out for firms' innovation decisions than neoclassic economics Krozer Krozer, J. After discussion of the three theories in sections 2 , 3 and 4 we give our conclusions in section 5.
The neoclassic theory concludes that welfare losses from pollution are unintended consequences of failures in market organisation and in public sector performance. Market failure appears where property rights with regard to environmental goods, like the right to use the environment as a sink for pollutants, have been imperfectly defined. Consequently, parties that suffer from pollution cannot develop trade with parties who benefit.
Since a market for scarce environmental goods does not emerge spontaneously, scarcity remains un-priced suggesting to polluters that there is no scarcity at all. One option for the victims of pollution is to try to make polluters liable for environmental damage. Such lawsuits clarify the rights of respective parties, laying the basis for negotiations and elimination of market failure.
However, if the sources and the victims of pollution are manifold, remedial action through private law breaks down. In such circumstances, which in high income countries are typical for the past five decades, control of pollution is a public good and a task for national governments with international coordination of their actions when trans-frontier and global pollution is involved.
Public sector failure occurs where governments fail to take appropriate action. In the neoclassic view, the consequence of such failures is that the environmental scarcities are not signalled, neither in price of pollution, nor in any other restrictions on pollution that can be imposed by regulations.
If pollution is for free then the economic incentive to contain emissions is lacking and even more so the incentive to invest in research and development of environmental technology that would provide the means to reduce, or prevent pollution. In its policy advice neoclassic economics has a clear preference for instruments that mimic a market.
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On the instruments of direct regulation, which is the cornerstone of actual environmental policy, the verdict is negative. Setting a price on pollution has two effects on polluters: it signals environmental scarcity and it provides polluters with an incentive to take action, while leaving them flexibility in their search for the best approach, including the search for and development of new more effective technologies. That is the main reason why a neoclassical economist will emphatically advise authorities to rely on a policy of pricing and not on direct regulation, arguing that the latter simultaneously kills the incentive for lowering pollution and flexibility.
Oxford : Elsevier. Innovation in Pollution Control. Journal of Environmental Economics and Management , 18 — Innovation and pollution control.see
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International Journal of Social Economics , 3 — 4. Journal of Environmental Economics and Management , — The recommendation to price pollution in order to foster environmental innovations is founded on the theory of induced technological change theory.
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It states that cost minimising firms develop and apply technologies to counter rising input-prices caused by resource scarcity Heertje Heertje, A. Applied to environmental issue, the idea is that using the environment as a sink for the residuals of production is similar to exploiting a natural resource. Setting a price on such use of an environmental resource would encourage users to search for alternative solutions. The theory is supported with findings from agriculture that indicate that high relative price of agricultural inputs does bring forward technologies measured by patents that use the most costly inputs sparingly Ruttan Ruttan, V W.
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In The economics of technological change , Edited by: Rosenberg, N. London : Penguin modern economics. Yet, the theory of induced technological change has not remained uncontested. Its critics are of the opinion that the role of input-prices in steering technological development is exaggerated. In support of their view they refer to the development of prices of raw materials in comparison with the use of raw materials as input in production.
Based on neoclassic theory one would expect that low prices of raw materials induce a more intensive material use. In reality the opposite has occurred: real average resource prices have declined further over the last century Rosenberg Rosenberg, N.
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Cambridge : Cambridge University Press. Beyond the era of materials. Scientific American , 34 6 : 24 — Berlin : Springer Verlag. Towards a more historical approach to technological change.
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The Economic Journal , — The findings suggest that resource prices have not been the main determinant of resource-saving technological development and they support a theory that reverses the causality between technological change and material prices. Development of new production methods is viewed as an ongoing process within firms, independent of input prices.
It delivers steady improvements that enable firm to cut down the use of raw materials as an input of production. The reduction in the demand for raw materials then becomes a factor in depressing prices of raw materials, next to other causes. In this view the neoclassic argument that environmental innovation are invoked automatically by a higher price on pollution is valid only when firms can choose between several available technological options but it could be less so for technology development.
To explain the technological change of resource use, including environmental resources, one has to look for other causes than resource prices. Let us therefore investigate ideas of the two other theories: evolutionary theory, which focuses on technological lock-in as barriers to environmental innovations, and the behavioural theory of the firm, which perceives the decision making in the firm as barrier for innovation.
New York : Pinter Publishers. The path is seen as a system of interlinked technologies. The system evolves as an innovation in one sector which triggers development and use of other related technologies in various sectors spin-off ; for example the development of computers started and has fed the production of software, the emergence of the internet and so on. In this way, an innovation is linked with other activities in a path-dependent pattern with positive effects on productivity.
The negative side of path-dependency, as evolutionary scholars have recognised, is that an established technology is difficult to substitute by a potentially superior option precisely because of linked activities. The established technology pattern has become a pervasive system Arthur et al. Positive Feedback in the Economy.
Scientific American , February : 80 — Even partial replacement is difficult because the activities linked with the established technology do not fit with the new technology and consequently the whole system would collapse. An example to illustrate the problem is the idea of substituting a hydrogen-based energy system for the present fossil fuel based energy system. Such an overhaul of energy would require huge capital investments in a new energy infrastructure to replace the present infrastructure that will have to be dismantled.
Technology is locked in because the huge capital investments made in the past for the infrastructure and organisations crafted on the established technology are sunk costs.