Sub-Theme 5 | Method to Apply the Environmental Charging System to Developing Nations
The problems that emerged in the operation of the environmental charging system in Korea can be important matters of consideration in the application to developing nations. These important matters are as follows.
First, it is necessary to impose charges with rates appropriate to the situation of developing nations and encourage corporations’ autonomous pollution control and the innovation of technologies to reduce environmental pollutions. While introducing air and water quality improvement charging system, gradual increase of charging rate can be considered. In addition, the method to provide incentives to the corporations that promote environment-friendly technological development through the tax revenue from the environmental improvement charging system can be considered. Wisdom is required to receive people’s opinions and reflect them on policies while gradually expanding imposition objects and selecting reduction objects. As developing nations have many poor corporations, it must be executed gradually in the beginning by states that are appropriate to the situation of each nation.
Second, tax revenue is created when environmental charging system is introduced and operated and the financial resource needs to be used by deciding priorities. In the case of developing nations, there must be not many environmental base facilities (air and water process facility, landfill, incineration plant and so forth) and thus new constructions can be considered. Emission charging system can be introduced in the area of manufacturing industry in developing nations and financial resources can be used to reduce air and water pollutants and support the corporations’ investment in prevention facilities. Collected emission charges can be used as the financial source of the environmental pollution prevention fund for long-term and low interest loan for corporations' investment in prevention facilities or they can be used for financial investment in the environmental base facilities such as air, water quality and so forth. In case of environmental improvement charging system, more various charging objects can be considered when applied to developing nations so that the financial resource for environmental investment can be prepared. The imposed environmental improvement charges can be used for supporting sewer system arrangement cost, sewage process plant, livestock waste process plant, high quality water process facility construction cost, environmental base facility operation cost and so forth. In addition, the financial resource can be used to support environmental pollution prevention project cost, environmental science and technology development cost, environmental policy research and development cost and so forth. In case of introducing and operating EPR system, the financial resource can be used for waste recycling facilities, waste recollection process facilities and so forth and investment fund needs to be used for raising the recycling industry.
Third, in order to respond to the problem of climate change, which is an international issue, the introduction of carbon tax and emission right trade system is being discussed in developing nations along with the operation of environmental charging system. Therefore, the policy of carbon tax and emission right trade system that will be introduced in the future must be discussed. In case of developing nations, urban pollution is serious due to diesel vehicles just like Korea in 1990s, a certain amount can be imposed on the owner of diesel vehicle annually or a certain amount can be imposed on fuel. In this case, the best way is to impose a certain amount on fuel but the next best way is to impose on cars (according to cc). It needs to be applied according to the situation of each nation.
Fourth, Korea is experiencing difficulties in imposing environmental improvement charges at the moment because of too many impositions compared to the imposition cost, small imposition cost and lack of effective management concerning delayed payment. When applying environmental improvement charges to developing nations, long-term installment payment, recalculation of rate and so forth must be considered based on our past experience so that distortions won’t happen in the operational process. In addition, confusion of the system can be reduced by making the imposition subject clear. For example, local governing body or central government can take charge.
Fifth, if developing nations introduce EPR just like Korea, they can enhance recycling rate and contribute to the development of recycle industry at the same time. For the EPR system, as developing nations do not have enough separate emission infrastructure and manpower, it will be difficult to conduct separate emission directly. Therefore, it is desirable to conduct full EPR system after having recollection infrastructure and system for recycling items. In developing nations, it is proper to set low recycling responsible rate and increase the rate gradually when introducing RPR system. The most important thing is that the system can be established and operated successfully when recollection system is well established and prepared. In other words, recycling is possible when recollection of recycling items is conducted smoothly. In the civilian sector, in the aspect of autonomous participation, EPR system can be applied in developing nations if there are good recollection and process infrastructures.
Various limitations follow until a nation’s system is properly introduced and established successfully, the will of the authority is important more than anything else. In conclusion, it is proper to introduce and operate the environmental charging system to fit the situation of developing nations and to introduce and operate water quality and air quality improvement charging system and EPR system gradually in stages.