Environmental policy should be inspired by the recognition that the environment is everyone’s business; all social actors must be involved in environmental management. Policies that implicitly subsidize a wasteful and environmentally destructive use of resources are pervasive: reforms should command a high priority on economic as well as environmental grounds. Compared to regulation, market-based instruments are little used but they can be more efficient; they can also produce revenues to finance environmental improvements. Regulatory effectiveness can be improved by: relying more on preventive measures, including environmental impact assessment; targeting large polluters; strengthening enforcement; and favouring mediation over litigation.
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