The U. State, territorial, and local governments are often the primary source of specific assistance to help business investors get new ventures off the ground or expand their existing operations.
Have questions about a federal regulation? Want to learn more about federal business programs and incentives? There are several benefits available to companies who wish to join a voluntary program. First, participation can improve their public image. Second, the program might offer technical or other types of assistance in exchange for participation.
Third, because voluntary programs are sometimes initiated as a pilot test to a regulation, participation can help the company to more quickly transition to a formal law, and possible limit potential litigation and monitoring and enforcement costs. A general problem with voluntary action programs is that it is quantitatively difficult to assess the success of the program.
Program evaluators have developed several statistical methods, however, to research success rates. The selection of the most appropriate market-based incentive or hybrid regulatory approach depends on a wide variety of factors, including:. Market-based or hybrid instruments aim to address two main types of market failure.
The first is the failure of firms or consumers to integrate into their decision-making the impact of their production or consumption decisions on entities external to themselves. Market-based or hybrid instruments that incorporate the costs of environmental externalities from pollution i. The second type of market failure is the inability of firms or consumers to make optimal decisions due to lack of information on investment options, available abatement technologies, or associated risks.
Information disclosure or labeling are often suggested when this occurs because policy makers believe that private and public sector decision-makers will act to address an environmental problem once information has been disseminated.
The use of a particular market-oriented approach is often directly associated with the nature of the environmental problem. Do emissions derive from a point source or a non-point source? Do emissions stem from a stock or flow pollutant? Are emissions uniformly mixed or do they vary by location? Does pollution originate from stationary or mobile sources? Point sources, which emit at identifiable and specific locations, are much easier to identify and control than diffuse and often numerous non-point sources, and therefore are often amenable to the use of a wide variety of market instruments.
Although non-point sources are not regulated under EPA, the pollution emitted from a non-point source is. This makes the monitoring and control of non-point source emissions a challenge. In instances where both point and non-point sources contribute to a pollution problem, a good case can be made for a tax-subsidy combination or a tradable permits system.
Under such a system, emissions from point sources might be taxed while non-point source controls are subsidized. Flow pollutants tend to dissipate quickly, while stock pollutants persist in the environment and tend to accumulate over time. While it is possible to rely on a wide variety of market and hybrid instruments for the control of flow pollutants, stock pollutants may require strict limits to prevent bioaccumulation or detrimental health effects at small doses, making direct regulation potentially more appealing.
If the limit is not close to zero, then a standard-and-pricing approach or a marketable permit approach that defines particular trading ratios to ensure that emission standards are not violated at any given source are potentially practical options. These same instruments are appealing when pollutants are not uniformly mixed across space.
In this case, it is important to account for differences in baseline pollution levels, and in emissions across more and less polluted areas. Stationary sources of pollution are easier to identify and control through a variety of market instruments than are mobile sources.
Highly mobile sources are usually numerous, each emitting a small amount of pollution. Emissions therefore vary by location and damages may vary by time of day or season. For example, health impacts associated with vehicle traffic are primarily a problem at rush hour when roads are congested and cars spend time idling or in stop-and-go traffic. Differential pricing of resources used by these mobile sources such as higher tolls on roads or greater subsidies to public transportation during rush hour is a potentially useful tool.
Check your area on the county and municipal level because most communities have some sort of local programs to help minority entrepreneurs get extra help to build businesses. Start with organizations with titles like 'Economic Development Authority. The classes are free and time commitments vary by topic, so it is easy to at least get an introduction to a subject you need to know more about. It's best for bootstrappers and companies that are very early stage. They take no equity and plug you into the networks of entrepreneurs and investors in South America.
My company did it and it was an amazing experience. Check out if there are any low-interest new venture loans or something of the like in your state. Check with your local Dept of Commerce for similar programs. Governments can offer financial assistance to private businesses making investments through the use of economic incentives. Incentives can include tax abatements, tax revenue sharing, grants, infrastructure assistance, no or low-interest financing, free land, tax credits and other financial resources.
But the question is, why? Why do government agencies invest public resources to support business development?
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