Explain the term "polluter pays principle".

The term "polluter pays principle" refers to the concept that those who cause environmental pollution should be responsible for the costs associated with managing or cleaning up that pollution. This principle is grounded in the idea that accountability for environmental harm encourages responsible behavior among individuals and businesses, promoting practices that prevent pollution in the first place.

By making the polluter financially responsible, it incentivizes companies and individuals to mitigate their environmental impact, as they will bear the costs of any damage caused. This principle is widely adopted in environmental policies around the world, helping to allocate financial responsibilities fairly and ensuring that public funds are not solely burdened with the costs of pollution management.

The other options do not align with this principle, as they propose alternatives that remove responsibility from the polluter. For instance, placing the cleanup burden entirely on governments would undermine the accountability mechanism that the "polluter pays principle" embodies. Similarly, providing tax breaks to polluters or exempting resource extraction companies from pollution costs disregards the essential logic of holding responsible parties accountable for their environmental impact.