Environmental Policy

Abstract

A variety of policies, direct regulation, economic measure, voluntary action, and information disclosure are applied in environmental problems. Optimal policies differ, depending on the contents of environmental problems and/or the circumstances of social systems. Economic measure, including both pricing policy and target policy, is theoretically effective policy; however, this policy works in condition of high price elasticity of demand and well-developed market. Compensation system for social damage is necessary when environmental damage happens. Policy analysis and assessment are required to assess policy. Tools such as cost-benefit analysis, cost-effectiveness analysis, and risk analysis are used for evaluating policies. However, these analyses can be used in assumption of the trust on the assessment by the general public. The discount rate has a great impact on climate change policy because cost and benefit generally occur at different times. A recycle-based society can be established based on the appropriate assessment of the costs and benefits of recycling and disposal.