@article{Stavins:10909,
      recid = {10909},
      author = {Stavins, Robert N.},
      title = {Experience with Market-Based Environmental Policy  Instruments},
      address = {2001},
      number = {1318-2016-103269},
      series = {Discussion Paper 01-58},
      pages = {92},
      year = {2001},
      abstract = {Environmental policies typically combine the  identification of a goal with some means to achieve that  goal. This chapter for the forthcoming Handbook of  Environmental Economics focuses exclusively on the second  component, the means - the "instruments" - of environmental  policy, and considers, in particular, experience around the  world with the relatively new breed of economic-incentive  or market-based policy instruments. I define these  instruments broadly, and consider them within four  categories: charge systems; tradable permits; market  friction reductions; and government subsidy reductions.  Within charge systems, I consider: effluent charges,  deposit-refund systems, user charges, insurance premium  taxes, sales taxes, administrative charges, and tax  differentiation. Within tradeable permit systems, I  consider both credit programs and cap-and-trade systems.  Under the heading of reducing market frictions, I examine:  market creation, liability rules, and information programs.  Finally, under reducing government subsidies, I review a  number of specific examples from around the world. By  defining market-based instruments broadly, I cast a large  net for this review of applications. As a consequence, the  review is extensive. But this should not leave the  impression that market-based instruments have replaced, or  have come anywhere close to replacing, the conventional,  command-and-control approach to environmental protection.  Further, even where these approaches have been used in  their purest form and with some success, such as in the  case of tradeable-permit systems in the United States, they  have not always performed as anticipated. In the final part  of the paper, I ask what lessons can be learned from our  experiences. In particular, I consider normative lessons  for: design and implementation; analysis of prospective and  adopted systems; and identification of new applications.},
      url = {http://ageconsearch.umn.edu/record/10909},
      doi = {https://doi.org/10.22004/ag.econ.10909},
}