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2014-09-26 | video

Environmental Policy Lecture 1 part 2

Policy Instrument Lecture 1 part 2

Sterner presents a table where he has categorized different economic policy instruments dividing them into four subgroups based on either affecting the price such as taxes, subsidies and charge and refund schemes, or rights like property rights, tradable permits, or regulation as for example banning or setting a minimum technological standard, or finally the category of info/legal which is based on public participation, voluntary agreements and so on. (The table is found on page 24 in the pdf attached.)

Sterner evaluates and exemplifies the different instruments in different settings and shows why it is not always the case that one method works better in all countries, as for example gasoline taxes which work in Sweden but are hard to even mention in the US.

He also presents examples from over the world. How did they for example phase out a hazardous chemical widely used as Trichloroethylene or CFCs? Or make car companies start implementing catalytic converters in their cars? And how do you monitor that the policies are being respected?