Environmental policy instruments for market and mixed-market economies

Abstract

This paper looks at the options available to public decision makers for managing environmental protection programmes in order to meet environmental quality objectives. Policymaking appears to be in transition towards more market-oriented instruments, but it remains an open-ended experiment whether we shall successfully execute a long-term social transition that involves the private sector and the state in new relationships implied by the pollution prevention and economic instruments rhetoric. In any event, now and in the future, the problem of social cost will be met by a mix of policies and instruments, each equally legitimate although not equally appropriate under every circumstance.