Designing Instruments for Resource and Environmental Policy

Contents 1. Introduction 2. The need for policy instruments 3. The Range of Policy Options 4. The Selection and Design of Policy Instruments 4.1. Efficiency with heterogeneous abatement costs 4.2. Difficult monitoring of emissions (but complementarity with products) 4.3. Efficiency with heterogeneous damage costs 4.4. Uncertainty in damage costs and efficiency 4.5. Inter-temporal efficiency with technical change or inflation 4.6. Measurability. Technical and ecological complexity 4.7. Burden of cost and issues of political feasibility 4.8. The need for funds for environmental management 4.9. No monitoring of emissions but only of ambient conditions 4.10. No direct monitoring of emissions but indirect proof possible 4.11. Large risks 4.12. Missing markets in insurance and banking 4.13. Rent seeking and political economy 4.14. Economy-wide effects 5. Concluding comments Acknowledgements Glossary Bibliography Biographical Sketch