A federal incentive program is one that encourages voluntary participation in an environmental initiative and does not levy penalties for nonparticipation. The Environmental Protection Agency's (EPA) 33/50 program is a good example of an incentive program. Begun in 1989, this program encouraged large manufacturers to reduce any of 17 designated chemical emissions by 33 percent by 1992 and 50 percent by 1995. Thus an industry could reduce its emissions to land, air or water of one or several of these chemicals. The only reward for participating in this program was formal recognition by EPA--a paper certificate of thanks for participating (suitable for framing and hanging in an appropriate entranceway), recognition at an awards ceremony, a press release or two announcing the award, mention in a few magazines, and the right to brag in the company's annual report or annual environmental progress report.
In the big scheme of things, RFF may be correct in saying that incentive programs may not work. Face it, there are an awful lot of industries that won't participate. Some are too small to devote the finances or manpower to participation and reduction. Others are so low in profile that they don't catch the of regulators who tend to focus on visible giants: chemicals, iron and steel, automotive manufacturing, printing and some others. Others are managed by selfish, ignorant and/or incompetent people. Others listen to their lawyers who don't advise about what is morally right, only on what is legal.
RFF says that voluntary incentive programs don't work primarily because there is no law to threaten compliance, EPA manages the programs poorly, and none of the participants (federal and state agencies, congress, environmental organizations and businesses) trust one another. Only regulations and lawsuits truly make things happen, RFF says. Incentive programs also fail because EPA doesn't plan ahead by defining the parameters of incentive programs so that everyone knows what should be done with how much, when and by whom is clearly understood. Lack of trust among the participants fosters an adversarial atmosphere, which doesn't make cooperative programs very cooperative, says RFF.
Much of what RFF laments is true, unfortunately, but incentive programs do offer benefits and the feds deserve some credit for trying to make them work. First, federal agencies don't have enough people or money to police everyone. For any system of order to work, some people simply have to voluntarily obey stop signs and traffic lights even when there are no police watching. Some incentive programs that are pursued within the spirit of their intent can make an impact and avoid the delay and cost of litigation.
