Question:
Which ONE of the following principles is directly related to environmental compensation?
Which ONE of the following principles is directly related to environmental compensation?
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Think about which principle assigns the cost of pollution damage directly to the party causing it.
Updated On: Jul 20, 2026
- Intergenerational equity principle
- Precautionary principle
- Subsidiarity principle
- Polluter-pay principle
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The Correct Option is D
Solution and Explanation
Step 1: Understand what environmental compensation means.
Environmental compensation refers to a legal and economic mechanism in which a party responsible for causing environmental damage or pollution is made to pay for the restoration, remediation, or offsetting of that damage. It is essentially a system that puts a monetary cost on the harm done to the environment and makes the responsible entity bear that cost.
Step 2: Recall the different environmental principles listed as options.
The intergenerational equity principle deals with fairness between present and future generations in the use of natural resources, it does not deal with compensation for damage already caused. The precautionary principle states that lack of full scientific certainty should not be used as a reason to postpone measures to prevent environmental degradation, it is about preventive action before harm occurs, not compensation after harm. The subsidiarity principle is a governance principle stating that decisions should be taken at the most local level capable of addressing the issue effectively, it has nothing to do with paying for damage.
Step 3: Identify the principle that matches environmental compensation.
The polluter-pay principle states that the party responsible for producing pollution should bear the cost of managing it to prevent damage to human health or the environment. This is the direct legal basis for environmental compensation schemes, including the polluter pays doctrine used by courts, such as the National Green Tribunal in India, to order compensation from polluting industries.
Step 4: Conclude.
Since environmental compensation is the practical application of making the polluter bear the financial burden of the damage caused, the correct answer is the polluter-pay principle, option (D).
Environmental compensation refers to a legal and economic mechanism in which a party responsible for causing environmental damage or pollution is made to pay for the restoration, remediation, or offsetting of that damage. It is essentially a system that puts a monetary cost on the harm done to the environment and makes the responsible entity bear that cost.
Step 2: Recall the different environmental principles listed as options.
The intergenerational equity principle deals with fairness between present and future generations in the use of natural resources, it does not deal with compensation for damage already caused. The precautionary principle states that lack of full scientific certainty should not be used as a reason to postpone measures to prevent environmental degradation, it is about preventive action before harm occurs, not compensation after harm. The subsidiarity principle is a governance principle stating that decisions should be taken at the most local level capable of addressing the issue effectively, it has nothing to do with paying for damage.
Step 3: Identify the principle that matches environmental compensation.
The polluter-pay principle states that the party responsible for producing pollution should bear the cost of managing it to prevent damage to human health or the environment. This is the direct legal basis for environmental compensation schemes, including the polluter pays doctrine used by courts, such as the National Green Tribunal in India, to order compensation from polluting industries.
Step 4: Conclude.
Since environmental compensation is the practical application of making the polluter bear the financial burden of the damage caused, the correct answer is the polluter-pay principle, option (D).
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