The “polluter pays” principle in environmental law assumes that the actor would reduce or avoid adverse effects of his actions if he had to bear the consequences of those actions (internalization of effects). Such internalization can generally be done in two ways: either by avoiding or eliminating the harmful effects or by wearing the financial consequences of the injury. It is therefore on the one hand to have an incentive effect, on the other to a compensatory effect.
Pineiro and Wallimann apply these societal cost principles from the environmental world to the social realm, where social problems can be seen as negative externalities caused by anything or anyone - which raises the question of the causes or perpetrators. It is indisputable that social problems, in fact, usually occur as a result of human activity, but to clearly identify the root cause can be infinitely more difficult than in the environmental field, where the evidence can be done using scientific inquiry. In advocating their case, Pineiro and Wallimann develop guidelines for a possible application of the polluter pays principle to the social sector, and additionally, highlight selected societal problem areas in the area of alcohol, unemployment, and disabilities where this could be applied.https://surface.syr.edu/books/1020/thumbnail.jp