This, too, erodes people's confidence in science as a way of knowing. It is therefore vague and difficult to craft into workable policies. Likewise, the principle that the polluter should pay is often not useful in the real world because it is not obvious how much the polluter should pay, or when. Now some innovative thinking has come along to improve the situation. In recent years Robert Costanza, an economist at University of Maryland, has been exploring ways to improve environmental decision-making under conditions of uncertainty.
Performance bonds are common in the construction industry.
If the construction is completed satisfactorily and on time, the bond monies are returned to the construction company. On the other hand, if the work is unsatisfactory, or is late, part or all of the bond will be forfeited. Costanza has combined these two ideas into an assurance bond, similar to a performance bond. The proponent would then put up an assurance bond to cover the current best estimate of the largest potential future environmental damages. Alternatively, if harm occurred, the bond would be used for environmental restoration, and to pay damages to anyone who had been harmed.