The“ polluter pays” principle is a cornerstone of environmental regulation. It raises billions of dollars each year and has been fundamental in pushing energy companies to pursue cleaner, more cost-effective energy sources. But when it was first formalized in 1972 by the Organization for Economic Cooperation and Development( OECD), it faced resistance. Energy companies argued that internalizing environmental costs would damage competitiveness, raise consumer prices, and deter innovation. At the time, many in the energy sector warned that internalizing environmental costs would damage competitiveness, raise consumer prices, and lead to layoffs— arguments widely circulated in the media and industry forums. Despite this, the principle gradually moved from being labeled“ radical” and“ punitive” to becoming a foundation of environmental and economic law.
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