Instrument Choice in Environmental Policy

  title={Instrument Choice in Environmental Policy},
  author={Lawrence H. Goulder and Ian W. H. Parry},
  journal={Environmental Law \& Policy eJournal},
We examine the extent to which various environmental policy instruments meet major evaluation criteria, including cost-effectiveness, distributional equity, minimization of risk in the presence of uncertainty, and political feasibility. Instruments considered include emissions taxes, tradable emissions allowances, subsidies for emissions reductions, performance standards, technology mandates, and research and development subsidies. Several themes emerge. First, no single instrument is clearly… Expand
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