Market-based Instruments In South Africa: A Review
Free (open access)
137 - 146
A. Nahman, L. Godfrey & R. Wise
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
market-based instruments, solid waste management, developing countries, sustainable development, panaceas.