Market-Based Environmental Policies: What Can We Learn from U.S. Experience (and Related Research)?

KSG Working Paper No. RWP03-031

28 Pages Posted: 30 Jul 2003

See all articles by Robert N. Stavins

Robert N. Stavins

Harvard University - Harvard Kennedy School (HKS); Resources for the Future; National Bureau of Economic Research (NBER)

Date Written: July 2, 2003

Abstract

This paper reviews lessons that can be learned from U.S. experiences with market-based environmental policies and from related research. Highlights of U.S. experience are summarized with four categories of policy instruments: pollution charges; tradable permits; market friction reductions; and government subsidy reductions. Normative lessons are considered in three areas: design and implementation; analysis of prospective and adopted systems; and identification of new applications. Positive political economy lessons are also reviewed.

Keywords: market-based instruments, cost-effectiveness, environment

JEL Classification: Q2

Suggested Citation

Stavins, Robert N., Market-Based Environmental Policies: What Can We Learn from U.S. Experience (and Related Research)? (July 2, 2003). KSG Working Paper No. RWP03-031, Available at SSRN: https://ssrn.com/abstract=421720 or http://dx.doi.org/10.2139/ssrn.421720

Robert N. Stavins (Contact Author)

Harvard University - Harvard Kennedy School (HKS) ( email )

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