Economic Instruments for Environmental Policy

A Typology of Tools for Building Sustainability Strategies

“…For instance, our distinction of taxes and charges corresponds to distinction of financial versus economic instruments made by Lohman (1994). The categorisations by Turner and Oschor (1994) and Jeanrenaud (1997) are also reflected in our typology, although in more detailed forms. With regard to Jeanrenaud's typology, we have to say that in our understanding, all environmental policy instruments aim for behavioural modification, whether they are coerced or voluntary.…”

“…Stabilisation of prices, such as for recycling products, is described as market support. Jeanrenaud (1997) forms three categories of environmental policy instruments according to the role of the state: (1) direct government intervention, that is, expenditures by the state to create, operate, and maintain infrastruc-tures (public anti-pollution investment) and to finance research; (2) measures to change practices (behaviour modification), including information and moral suasion, command-and-control, incentive-based regulations, and privatisation, whereby the incentive-based regulations include all of the "classical" economic instruments (charges, tradable permits, deposit-refund systems, joint implementation); and (3) "laissez-faire", where the actors influenced participate voluntarily, and the role of the state is restricted to defining clear property rights and liability for damages.…”