Economic incentive

{
  "id": "MLC-T-ENV-008900",
  "term": "Economic incentive",
  "field": "Environment",
  "term_source": "Economic Incentive",
  "definition": "Defined broadly as instruments that use financial means to motivate polluters to reduce the health and environmental risks posed by their facilities, processes, or products. These incentives provide monetary and near-monetary rewards for polluting less and impose costs of various types for polluting more, thus supplying the necessary motivation to polluters. This approach provides an opportunity to address sources of pollution that are not easily controlled with traditional forms of regulation as well as providing a reason for polluters to improve upon existing regulatory requirements. Under traditional regulatory approaches, polluters have little or no incentive to cut emissions further or to make their products less harmful once they have satisfied the regulatory requirements.",
  "subject": "Social and economic factors",
  "references": [
    "EPA The United States Experience with Economic Incentives for Pollution Control at http://yosemite.epa.gov/EE/epa/eed.nsf/webpages/USExperienceWithEconomicIncentives.html"
  ],
  "url": "https://mlchart.com/terminology/environment/economic-incentive/"
}