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Economic Instruments for Industrial Pollution Prevention and Control in India

The following points were stressed during the deliberations

The workshop gathered several stakeholders from different spheres and the overall objective of the workshop was to explore the potential of economic instruments in the country. The workshop on Economic Instruments for Industrial Pollution Prevention and Control, witnessed a consensus that the time is ripe for introducing economic instruments (EIs) for prevention and control of industrial pollution in India.

 
EIs should complement the existing standards regime and not be a substitute;
EIs should be used as an incentive mechanism to encourage industry to adopt environment friendly technologies;
Preparatory work should be done on the relative costs and benefits of EIs compared with command and control (CAC) instruments; and
 
Involvement of the stakeholders in the design and enforcement of EIs is necessary to ensure the success of EIs in improving environmental quality.
 
 

After analyzing the response of the various stakeholders the experts recommended that the time is right to initiate economic instruments, that the initiatives could be taken in the form of one or more simple area or sector specific pollution charge schemes. Parallel activities in other areas like product charges, public disclosure, green rating and tradable permits would improve the acceptability of these instruments. Selectivity of instruments is required based on starting in areas where high damages have occurred, in areas where political will is existing, in areas where the institutional feasibility is known and in areas where one gets a local champion to lead the way through the performances required.

 
The workshop concluded on the note that a multi dimensional approach would certainly increase the potential of EIs in the country.
 
 
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