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Environmental Protection Policies Can Benefit Businesses, According to Study

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Many critics of environmental policies focus entirely on economic fallout for businesses and the costs involved in implementing them. But new research has revealed that it’s all about the approach you take with many opportunities for businesses to profit.

It’s important to point out that its market and incentive-based policies work best for encouraging a certain behavior and providing an opportunity to reward good behavior.

A Phys.org report highlighted an important factor that should be the standard blueprint.

“Economists generally prefer market-based or incentive-based environmental policies, Lin Lawell said, with a carbon tax or tradeable permit system representing the gold standard.”

A huge study in China has revealed the command approach did indeed cause negative impacts on GDP. And while you could argue that the benefits to the environment justify this trade-off, it is something that policymakers have to be aware of. 

Once the carrot and stick approach of incentives comes into play, that negative impact disappears, and researchers have shown the positive impact that environmental policies have on the bottom line of businesses. 



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