Author : John Norregaard,Valérie Reppelin-Hill
Publisher : International Monetary Fund
Page : 58 pages
File Size : 51,6 Mb
Release : 2000
Category : Business & Economics
ISBN : UCSD:31822028396323
Taxes and Tradable Permits As Instruments for Controlling Pollution by John Norregaard,Valérie Reppelin-Hill Pdf
Annotation This paper examines the relative merits of two dominant economic instruments for reducing pollutiongreen taxes and tradable permits. Theoretically, the two instruments share many similarities, and on balance, neither seems preferable to the other. In practice, however, most countries have relied more on taxes than on permits to control pollution. the analysis suggests a number of lessons to be learned from country experiences regarding the design and implementation of both instruments. While many, particularly European countries, currently have long-term programs involving environmental taxes, a willingness to experiment with tradable permits seems to be growing, especially given the Kyoto protocol emission targets.