polluter pays

Synonyms

user pays, impacter pays

Definition

In 1972 the OECD agreed that polluters should pay the costs of abating the own environmental pollution, for example by installation of fi lters, sanitation plants and other add-on techniques. This is the narrow defi nition. The extended defi nition is when polluters would additionally pay for the damage caused by their residual pollution (eventually also historical pollution). Another extension is the precautionary polluter pays principle where potential polluters are mandated to take insurance or preventive measures for pollution that may occur in the future. The acronym PPP has also other meanings, such as Preventing Pollution Pays-off, Public Private Partnership, or Purchasing Power Parity.