Environmental Policy Cheat Sheet
The core ideas of Environmental Policy distilled into a single, scannable reference — perfect for review or quick lookup.
Quick Reference
Command-and-Control Regulation
A regulatory approach in which the government sets specific environmental standards (such as emission limits or technology requirements) and enforces compliance through penalties. This is the traditional backbone of environmental law.
Cap-and-Trade
A market-based policy instrument that sets an overall cap on emissions, allocates or auctions permits to emitters, and allows them to trade permits among themselves. Firms that can reduce emissions cheaply sell surplus permits to those facing higher abatement costs.
Carbon Tax
A price set directly on carbon dioxide emissions (or the carbon content of fossil fuels) intended to internalize the social cost of carbon. It provides a predictable price signal that incentivizes emission reductions across the economy.
Precautionary Principle
The principle that when an activity raises threats of harm to human health or the environment, precautionary measures should be taken even if some cause-and-effect relationships are not fully established scientifically.
Polluter Pays Principle
The foundational policy concept that those who produce pollution or environmental damage should bear the costs of managing it, rather than allowing costs to be externalized onto society or the environment.
Environmental Impact Assessment (EIA)
A systematic process for evaluating the likely environmental consequences of a proposed project or development before a decision is made. EIAs inform decision-makers and the public about potential ecological, social, and health effects.
Tragedy of the Commons
An economic and ecological concept describing how shared resources (commons) are depleted when individuals act in their own self-interest without coordinated management, since no single user bears the full cost of overuse.
Externality
A cost or benefit of an economic activity that affects third parties who are not directly involved in the transaction. Negative externalities like pollution represent market failures that environmental policy seeks to correct.
Sustainable Development
Development that meets the needs of the present without compromising the ability of future generations to meet their own needs, as defined by the 1987 Brundtland Commission. It integrates economic growth, environmental protection, and social equity.
Environmental Justice
The principle that all people, regardless of race, income, or national origin, deserve equal protection from environmental hazards and equal access to environmental benefits, and meaningful participation in environmental decision-making.
Key Terms at a Glance
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