Designing Incentives Regulation for the Environment
56 Pages Posted: 28 Oct 2008
Date Written: October 27, 2008
This paper provides an overview of legal and policy instruments that can be used to provide potential polluters with incentives for pollution abatement. Traditional law and economics literature as well as environmental economics are used to show how liability rules, safety regulation, environmental taxation and emission trading all have specific advantages and disadvantages. It is therefore that environmental policy should look for optimal combinations (mixes) of a variety of policy instruments argue.
Keywords: environmental policy, liability rules, environmental taxation, emission trading, regulation, command and control, interest groups
JEL Classification: K32, K13, Q50
Suggested Citation: Suggested Citation