Polluter Pays Principle

The principle that the costs of environmental damage created by a production process, should be borne by the producer, i.e. the polluter. Often the cost of environmental damage is externalised, which is (unfairly) borne by society as a whole, resulting in greater profits for the producer. Ideally producers will develop more efficient and less polluting processes, internalise environmental damage costs (which would typically result in higher prices for their products, but these would be more realistic for the environmental damage they contribute to), and commit to a more environmentally responsible approach to the production of their goods.