In recent years, environmental policymakers have adopted a set of instruments quite different from those usually prescribed in environmental policy textbooks. Economists have traditionally encouraged the use of incentive-based instruments in place of command and control regulation. This book explores the economic incentives provided by environmental policy, their effects on a firm's strategy, and their distribution across sectors. It discusses issues that arise in the design and implementation of environmental taxes or other market-based instruments, compliance costs, and environmental policy design when trade and development issues are considered, along with incentives, information, and research and development as they affect optimal policy design. The book looks at CO2 abatement policies, carbon taxation, air quality regulation, the link between unemployment and environmental tax reforms, the environmental regime in developing countries, environmental policy and firm behavior, and the effects of environmental policy on the performance of environmental research joint ventures.
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