Market-Oriented Approaches to Pollution - Essay Example

The direct approach has always differed from other types of regulation techniques such as the use of the economic incentive approach which encourages the organizations to conserve the environment by promising them tax reduction and incentives as a reward for compliance with the set rules (Hatch, 2006). In direct control, the government sets rules to be followed by any company in connection with environmental conservation, failing which sanctions may befall the company that fails to follow the set rules, e.g., facing prosecution in court.

Hatch (2006) argues that alternative methods concentrate on market-oriented approaches to pollution where they always encourage companies to regulate their emissions as they continue to produce, rather than on direct control which must be followed, failing which the company is closed and banned from operating. This appears to discourage production.

 One alternative approach that can best be applied in the industrial sector is the trading scheme approach. It helps to provide a cost-effective solution to enhance the achievement of a clean environment as firms are allowed to make environmental improvements and conserve their place of choice (Hatch, 2006). The schemes are formed to allow firms to trade in waste to deliver environmental objectives at a lower cost.

They adopt a variety of ways to engage in waste and emissions trade as they deal with the use of resources such as water with the sole aim of addressing waste management, thus reducing environmental pollution. In the end, firms using this approach must have enough wealth to cover their waste and emissions within the given time for them to go on operating (Hatch, 2006) Read More