Monday, July 25, 2011

Economy Instrument

Being green is profitable has been the quote for everyone in dealing with the environment movement. We always ask people to embrace green as it is not that difficult and troublesome, and at the same time you can either save your pocket or making some profit. However, except for those who are passionate enough about environmental conservation, not many will actually able to change their life style or daily routine or even working style to capitalise on the doing good things. This voluntary instrument method is simply not suit to the ordinary people or for a society which has not inculcated the value system on environmental conservation as their culture and way of life.

Then, how about legal instrument? Getting people to have no choice, but comply with the requirement. Is this going to work? Perhaps yes if people have no choice and importantly it will affect their livelihood or balance sheet of the company. For example, the furniture manufacturers have to obtain certificate of sustainable forestry for their material or else the products are not allowed into European Countries. Similarly, the developers are required to comply with the conditions set or else their project would not be approved or intensity of development will be reduced. Presumably this will only work if the enforcement system is in place and people have no choice but to do it. What happen if this is not a dead or life issue but merely a collective responsibility of doing it for the sake of community and Earth at large? How about give a choice to people by applying the polluter pay or user pay principle? You pay more on what you consume or doing bad on the environment. For example, by using more electricity or water, you have to pay higher tariff.

Most countries will opt for economic instrument as a complimentary measure to both the above. While voluntary instrument is too soft a way and will only work in longer term after the whole society has inbuilt with the culture, legal instrument is too harsh and will only effective with stringent enforcement. Economy instrument will provide a choice to people. People can choose to do it for some incentives return. This instrument is popular as people is given a choice to do good. Of course, at the same time you will have to pay more by not doing it. This is especially worked well at the infant stage of a programme in which more encouragement and promotion is required.

Hence, the proposal by Petaling Jaya City Council providing assessment rebate to the people embracing green is great. Similarly, the rebate by Ministry of Energy, Green Technology and Water for buying energy efficiency air-con, fridge and chillers is equally encouraging.

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