A.Outline the main advantages and limitations of the ‘polluter pays’ principle. B. Discuss possible sources of ‘government failure’ in the application and administration of environmental policy. C....

B. Discuss possible sources of ‘government failure’ in the application and administration

of environmental policy.

C. ‘Market prices should as far as possible be made to reflect the external costs to

society of economic activity.’ What methods can governments use to ‘internalise’

the social costs of environmental damage?