Subsidies Examples: Wastewater Management

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While regulations are the main policy instrument used in the waste management industry, subsidies to promote improved waste and wastewater management can stimulate technology diffusion and affect private sector behaviors. Effective financial incentive programs have included subsidies for constructing incinerators and local subsidies for recycling and domestic composting of biodegradable waste.

 

An effective incentive system to promote improved waste and wastewater management should take into account the social costs of alternative disposal technologies and be tailored to the demographic characteristics of the community. Educational programs can increase the effectiveness of subsidy programs. In developing countries, such as Thailand, a lack of institutional and financial support can undermine the effects of financial incentive policies.