Integrated environmental policy: A review of economic analysis

Holistic environmental policies, which emerged from a mere combination of technical activities in waste management some 40 years ago, constitute the most advanced level of environmental policies. These approaches to environmental policy, among them the policies in integrated waste management, attempt to guide economic agents to an environment-friendly behaviour.

Nevertheless, current holistic policies in waste management, including policies on one-way drinks containers and waste electrical and electronic equipment, and implementations of extended producer responsibility with further applications to waste electrical and electronic equipment, reveal more or less severe deficiencies – despite some positive examples. This article relates these policy failures, which are not necessarily the result of an insufficient compliance with the regulations, to missing constitutive elements of what is going to be called an ‘integrated environmental policy’.

This article therefore investigates – mostly from a practical point of view – constitutive elements, which are necessary for a holistic policy to serve as a well-functioning allocation mechanism. As these constitutive elements result from a careful ‘integration’ of the environmental commodities into the economic allocation problems, we refer to these policies as ‘integrated environmental policies’. The article also discusses and illustrates the main steps of designing such a policy – for waste electrical and electronic equipment and a (possible) ban of Glyphosat in agriculture.

As these policies are dependent on economic and political stability with environmental awareness sufficiently developed, the article addresses mostly waste management policies in highly industrialised countries.