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2. Why is cost effectiveness a desirable goal of environmental policy? How is it achieved?Environmental policy is shifted from centralized approach to non-centralized. A non-centralized policies bring about results from the interaction between the many decisions, and each individual necessarily make its own assessment about the reality of the situation. In the non-centralized method, the interaction between the individual aims to express the information about marginal abatement cost and marginal damage to adjust the situation to the point marginal abatement cost equal marginal damage. Normally, we can not accurately measure the damage caused by the recession caused a field. Therefore, cost effectiveness become evaluation criteria mainly environmental policy.A policy is cost effective if it creates the maximum environmental improvement with the resources spent, in other words, it allows to achieve a level of environmental improvement with minimum cost level. Besides the improvement of the environment with the maximum consumable resources, the possibility of a policy of achieving cost effectiveness is also important for another reason. If the program is not cost effective, the policing and management will decide to use the function of high marginal abatement costs than necessary, leading to the set goals of reducing waste volume is less than rigorous
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