Business ethics – case study—poverty and pollution—it is referred to
Studies have shown that incentive programs can be effective at encouraging more eco-friendly operations from producers in less-developed regions. For example, research has indicated that the introduction of incentives such as green investments or technical assistance can lead to decreased reliance on fossil fuels and higher levels of energy efficiency among firms in these locations. Additionally, some studies suggest that cash payments or other financial rewards may create an added impetus for companies to prioritize sustainability goals.
Based on my assessment, I would argue in favor of using pollution permits over incentive programs when trying to reduce negative externalities associated with industrial production in less-developed regions. Unlike incentives which are often one-time measures with uncertain longterm effects, permits put a direct “price” on polluting activities – meaning any company emitting beyond their quota will face heavy penalties. This ensures greater accountability than simply offering financial rewards; it also creates a level playing field between participating organizations since they all must abide by the same regulations—which is especially important given disparities between different nations’ standards.
Ultimately, incentives are certainly useful tools when attempting to incentivize sustainable practices but pollution permits offer a more efficient approach towards achieving tangible environmental results from industries located within developing countries.