The draft directive on integrated pollution prevention and control: An economic perspective

This article gives an economic analysis of some of the more important aspects of the new proposal for a Directive on Integrated Pollution Prevention and Control (IPPC). The authors use an economic interpretation of the subsidiarity principle to analyze the concept of IPPC, the choice of the permit as a central instrument and the importance and interpretation of the principle of Best Available Technology (BAT) in the IPPC proposal. They come to the conclusion that the proposal does not conform with the subsidiarity principle to the extent that it allows for a European-wide interpretation of BAT and prescribes the permit as the main instrument to control and prevent pollution. Emission and technology standards should be set at local level, using local and optimally differentiated interpretations of BAT, complying with a European framework of quality standards. Also scope should be given to Member States for using alternative instruments.