Market-based Instruments In
South Africa: A Review
Author(s)
A. Nahman, L. Godfrey & R. Wise
Abstract
Sustainable development presents particular challenges for developing countries,
where the need for rapid economic development to overcome poverty and
inequality often makes environmental protection a low priority. Market-based
instruments (MBIs), which make it possible for environmental considerations to
be built into everyday economic decision-making, and for environmental
objectives to be achieved at the lowest possible cost to society, may be
appropriate policy instruments for addressing these types of challenges.
However, despite their potential advantages in the developing country context,
MBIs may not always be appropriate for developing countries, and should not be
seen as panaceas that can simply be transferred to developing countries without
considering local circumstances. By way of example, this paper reviews the use
of MBIs for solid waste management in South Africa, and presents results from a
survey of waste management authorities regarding the opportunities and
constraints associated with their implementation. It is found that a number of
fundamentals need to be put in place before MBIs can be implemented.
However, this does not imply that the potential of MBIs should be ignored.
Indeed, it is proposed that MBIs can be designed and implemented in an
innovative, incremental way whereby capacity and experience are gradually
developed over time.
Keywords: market-based instruments, solid waste management, developing
countries, sustainable development, panaceas.
1 Introduction
The challenges associated with sustainable development are particularly difficult
and complex in developing countries, where trade-offs between economic, social
Keywords
market-based instruments, solid waste management, developing
countries, sustainable development, panaceas.
Related Book
Other papers in this volume
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