Instrument Choice in Environmental Policy

  title={Instrument Choice in Environmental Policy},
  author={Lawrence H. Goulder and Ian W. H. Parry},
  journal={Review of Environmental Economics and Policy},
  pages={152 - 174}
  • L. GoulderI. Parry
  • Published 1 April 2008
  • Economics
  • Review of Environmental Economics and Policy
The choice of pollution control instrument is a crucial environmental policy decision. We examine the extent to which various environmental policy instruments meet major evaluation criteria, including cost-effectiveness, distributional equity, the ability to address uncertainties, and political feasibility. Instruments considered include emissions taxes, tradable emissions allowances, subsidies for emissions reductions, performance standards, mandates for the adoption of specific technologies… 

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