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- Title
- Economic Analysis of Environmental Laws
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- Author
- Sanghann Lee
- Type
- Research Reports
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- Subject
- Corporate/Industrial Policy
- Publish Date
- 1997.06.21
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- File
- -
- View Count
- 6653
Most of the environment regulations are based on the public environmental laws, neither private nor civil laws. The purposes of this study, from the standpoint of economic principles especially the law and economics, are to evaluate environmental regulations and the public environmental laws to find out some economically efficient alternative remedies, and to suggest the amendments of environmental laws. Current research deals with water environmental conservation laws, air environmental conservation laws, noise-vibration control laws, environmental impact evaluation laws, and related rules on fundamental laws for environmental policy. Major findings are as follows.
Firstly, environmental policies which primarily rely on central government's direct regulation are economically inefficient. The public environmental laws have inefficient structure.
Secondly, the strict liability rule which the Environmental Policy Act endorses is shown to be inefficient. Application of various liability rules, which are compatible with the least-cost avoider principle, is desirable.
Thirdly, it is argued that the uniform regulations, which are applied over all kinds of pollutants, need remedies. Local pollutants (such as noise, vibration, order and dust), which has small geographical impacts, had better be regulated by the scheme of voluntary negotiation. on the other hand, water pollutants on regional pollutants, which has geographically wide ranging impact, had better be regulated by the tradable permit system. The stationary-source air pollutants should be regulated under the effluent charge system, and the mobile-source air pollutants be under the environmental tax system. The authority of central government should be delegated to the local government for local pollutants, to the regional government for regional pollutants.
Fourthly, this study suggests that the administrative punishment or the punishment by the criminal law for the violations of the environmental laws are inefficient. Therefore, the uncertainty of actual punishment should be reduced, the severity of punishment be heightened and the exposure of the violation be increased.
Fifthly, as for environmental impact evaluation laws, results from the voluntary negotiation between the developer and the nearby residents under influence should take precedence over those of the statutes.
Lastly, even though improvements are made with respect to the above mentioned defects, problems associated with the collective damages still remains. Introduction of the class action is recommended.
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