Market based instruments for environmental policy in Europe – EEA Technical Report 2005


Market based instruments are increasingly being used across Europe. The development of these instruments is covered in recent European Environment Agency (EEA) reports – Using the market for cost-effective environmental policy and Market based instruments for environmental policy in Europe. The EEA’s compendium is based mainly on reports from a team led by IEEP, which identify a range of key lessons for developing economic instruments. For example, having a ‘champion’ who is willing to take risks with innovation is vital. ‘Picking winners’ by focussing on the issues for which there is agreement and get them addressed can help; but it is also important to keep things simple, understandable and realistic. It is also vital that interconnections with other measures are understood, and that stakeholders know in advance so that they have time to prepare for change.-

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