|
Letters to the Editors |
Letter to the Editor of South China Morning Post - Response to reader's letter on fairness of environmental policy
In his letter "Don't trash the small guy for big business" (Oct 27) Thomas Chow questions the fairness of government’s proposals to subsidize the replacement of old diesel commercial vehicles (DCV), while imposing charges for household waste.
His concerns touch on key aspects of the choice between incentives and penalties in environmental policy.
Why subsidise DCV owners to phase out vehicles? A key consideration is many of the owners are small operators. The vehicle, though old, represents a major investment and is expensive to replace. Those vehicles were purchased at a time of lower awareness of the public health costs of pollution. Today we all know better.
In any event, it is not possible to deprive owners of a major capital asset without a reasonable arrangement. Hence, we have proposed the subsidy.
Why charge for household (and business) waste? Unlike vehicles that have long working lives and represent capital investments, waste is generated daily, and parts of it are subject to consumer discretion, as demonstrated by response to the plastic bag levy.
Yes, some consumer goods come over-packaged. But with the proper incentive, buyers will begin to look for goods with less packaging. Over time, suppliers will have a financial motive to minimize packaging too through consumer preference, as well as new government policy.
In environmental management, incentives or penalties are imposed with the intent of changing behaviour and they are in fact two sides of the same coin. The choice between them depends on a number of considerations, including fairness, administrative complexity, and how effective each will be.
While they are certainly not suitable for all aspects of environmental managements, in the right situation incentives and penalties offer important advantages over controls that strictly dictate behaviour. They provide flexibility, leaving people free to respond in their own way, while giving them reason to do the environmentally responsible thing.
Christine Loh
Assistant Director of Environmental Protection
Â