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Article: Instrument mixes for environmental policy: how many stones should be used to kill a bird?(Report)
- Article from:
- International Review of Environmental and Resource Economics
- Article date:
- May 1, 2007
- Author:
CopyrightCOPYRIGHT 2007 Now Publishers, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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ABSTRACT
How many instruments should be used to address a particular environmental problem? That is the question this article addresses. According to the "Tipbergen rule," one instrument per target is needed. The existence of any non-environmental market failures affecting the environmental problem at hand will also require one additional instrument per market failure. However, detailed case studies reveal that it is no simple task to count neither the number of relevant targets, nor the number of instruments applied. While there are good reasons to apply several instruments in combination to address a given environmental problem (non-environmental market ...