Market-based Instruments: If they’re so good, why aren’t they the norm?
Published: September 2000
Economists have long recommended market-based instruments for efficient environmental policy-making – taxes, tradable permits, auctions of property rights, etc. So why is progress on them so slow? The reality is that any environmental policy faces many political, institutional and technical obstacles, but market-based instruments face more than most. Many relate to false perceptions, although some are real. Most have solutions, some do not.