The polluter pays principle holds the individual or group who creates the pollution responsible for paying for the resulting damage inflicted on the environment. This principle can be put into action by such measures as a Pigouvian tax.
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**Think Further Questions
1. Can you think of any other examples of legislation informed by the polluter pays principle?
2. What’s another way beyond Pigouvian taxes in which the market can be incentivized to go green?
3. How might the guiding ideas behind the polluter pays principle be more effectively implemented?
**Contents
00:00 - Problem
00:32 - Solution
00:49 - Polluter Pays Principle
01:02 - How It Works
02:06 - Why Care?
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