Economic instruments and their potential in conserving the Malaysian coastal zone

Balancing the needs of coastal communities, the desire for long-term sustainable resource use, and the maintenance of natural ecosystem equilibrium is a significant issue in most coastal regions. The United States, the United Kingdom and other European nations have used economic instruments (EIs) as an additional tool in curbing pollution. This approach has proven successful in many parts of the world, especially in developed countries.In Malaysia, EIs for environmental protection have not been introduced, but general tax incentives coupled with others instruments (grants and subsidies) have been in place for the last 10 years. As the present environmental legislation (Environmental Quality Act of 1974) is not very effective in curbing pollution, EIs such as green/environmental tax should be considered by the Malaysian Government.