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Economic Savings from Using Economic Incentives for Environmental Pollution Control (1999)

Paper Number: EE-0415

Document Date: 06/01/1999

Author(s): Robert C. Anderson

Subject Area(s):

Economic Incentives

Keywords:  Incentives, Pollution Fees, Charges, Taxes, Trading and Marketable Permits, Deposit-Refund Systems, Liability, Information, Subsidies, Voluntary Programs

Abstract: 

Economic incentives, such as emission taxes, effluent trading, deposit refund systems, information reporting requirements, liability for harm caused by pollution, and voluntary programs have the potential to achieve environmental objectives at lower cost than traditional command and control regulations. This report estimates the economic savings from the more significant of existing incentive-based environmental programs and examines the potential for extending these and other programs to increase the savings. The greatest potential for future savings from the use of economic incentives lies with the reduction of greenhouse gas emissions.

This paper is part of the  Environmental Economics Research Inventory.

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  • Economic Savings from Using Economic Incentives for Environmental Pollution Control (PDF)(52 pp, 45 MB, 06/01/1999, EE-0415)
    Economic incentives, such as emission taxes, effluent trading, deposit refund systems, information reporting requirements, liability for harm caused by pollution, and voluntary programs have the potential to achieve environmental objectives at lower cost than traditional command and control regulations. This report estimates the economic savings from the more significant of existing incentive-based environmental programs and examines the potential for extending these and other programs.