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Application of Economic Instruments in Environmental Policy Bhatia Archi Research Scholar, Department of Economics and Public Policy, Central University of Himachal Pradesh, Himachal Pradesh, India Online published on 2 May, 2015. Abstract The search for smarter ways to control pollution has generated heated debate. The issue of choosing the means or policy instruments to meet environmental goals – can be a surprisingly complex task for policymakers. The traditional forms of environment regulation took the form of a so-called command-and control regulatory approach. However economists have consistently endorsed the use of market based instruments. At least in theory market based instruments minimize the aggregate cost of achieving a given level of environmental protection. Despite these advantages, market based instruments have been used far less frequently than command-and-control standards. The paper seeks to identify, and evaluate economic instruments in achieving the goal of cleaner environment; to address the concerns of a developing country regarding environmental protection and to look into few country's examples which have successfully achieved solutions to their environmental problems through use of these instruments. Top Keywords Economic Instruments, environment protection, green taxes, emission fees and deposit-refund system. Top | |
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