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Market Based Instruments for Environmental Policy in Europe


This report is one of two recent reports from the European Environment Agency (EEA) on the development of market based instruments across Europe. Both reports are mainly based on work from a team led by IEEP, which identified 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 where there is agreement can help; and the importance of keeping 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. The second report, ‘Using the market for cost-effective environment policy’, is also available for download.

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