IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i16p4344-d256754.html
   My bibliography  Save this article

Market-Based Instruments for Managing Hazardous Chemicals: A Review of the Literature and Future Research Agenda

Author

Listed:
  • Daniel Slunge

    (Gothenburg Centre for Sustainable Development, University of Gothenburg, Box 170, 40530 Gothenburg, Sweden)

  • Francisco Alpizar

    (Tropical Agricultural Research and Higher Education Center (CATIE), Cartago, Turrialba 30501, Costa Rica)

Abstract

We take stock of the lessons learned from using market-based instruments in chemicals management and discuss the potential for increased use of risk-based taxation in the management of pesticides and other hazardous chemicals. Many chemical substances cause significant diffuse emissions when emitted over wide areas at individually low concentrations. These emissions are typically very difficult and costly to control. The targeted chemical may exist in many products as well as in a wide variety of end uses. However, the current regulatory instruments used are primarily bans or quantitative restrictions, which are applied to individual chemicals and for very specific uses. Policy makers in the area of chemicals management have focused almost solely on chemicals with a very steep marginal damage cost curve, leading to low use of price regulations. The growing concerns about cumulative effects and combination effects from low dose exposure from multiple chemicals can motivate a broader use of market-based instruments in chemicals management.

Suggested Citation

  • Daniel Slunge & Francisco Alpizar, 2019. "Market-Based Instruments for Managing Hazardous Chemicals: A Review of the Literature and Future Research Agenda," Sustainability, MDPI, vol. 11(16), pages 1-20, August.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:16:p:4344-:d:256754
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/16/4344/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/16/4344/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Martin L. Weitzman, 1974. "Prices vs. Quantities," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 41(4), pages 477-491.
    2. Stavins, Robert N., 2003. "Experience with market-based environmental policy instruments," Handbook of Environmental Economics, in: K. G. Mäler & J. R. Vincent (ed.), Handbook of Environmental Economics, edition 1, volume 1, chapter 9, pages 355-435, Elsevier.
    3. Walls, Margaret, 2011. "Deposit-Refund Systems in Practice and Theory," RFF Working Paper Series dp-11-47, Resources for the Future.
    4. Oecd, 2015. "The Lake Taupo Nitrogen Market in New Zealand: A Review for Policy Makers," OECD Environment Policy Papers 4, OECD Publishing.
    5. Slunge, Daniel & Sterner, Thomas, 2001. "Implementation of Policy Instruments for Chlorinated Solvents: A Comparison of Design Standards, Bans, and Taxes to Phase Out Trichloroethylene," Discussion Papers 10516, Resources for the Future.
    6. Pathak, Pankaj & Srivastava, Rajiv Ranjan & Ojasvi,, 2017. "Assessment of legislation and practices for the sustainable management of waste electrical and electronic equipment in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 78(C), pages 220-232.
    7. Arild Vatn, 1998. "Input versus Emission Taxes: Environmental Taxes in a Mass Balance and Transaction Costs Perspective," Land Economics, University of Wisconsin Press, vol. 74(4), pages 514-525.
    8. Martine Bellanger & Barbara Demeneix & Philippe Grandjean & R. Thomas Zoeller & Leonardo Trasande, 2015. "Neurobehavioral Deficits, Diseases, and Associated Costs of Exposure to Endocrine-Disrupting Chemicals in the European Union," Post-Print hal-01504819, HAL.
    9. Greenhalgh, Suzie & Selman, Mindy, 2012. "Comparing Water Quality Trading Programs: What Lessons Are There To Learn?," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 42(2), pages 1-22.
    10. Philippe Grandjean & Martine Bellanger, 2017. "Calculation of the disease burden associated with environmental chemical exposures: application of toxicological information in health economic estimation," Post-Print hal-02464775, HAL.
    11. Daniel Slunge & Thomas Sterner, 2009. "Environmental Fiscal Reform in East and Southern Africa and its Effects on Income Distribution," Rivista di Politica Economica, SIPI Spa, vol. 99(3), pages 95-124, JULY-SEPT.
    12. Jaffe, Adam B. & Newell, Richard G. & Stavins, Robert N., 2005. "A tale of two market failures: Technology and environmental policy," Ecological Economics, Elsevier, vol. 54(2-3), pages 164-174, August.
    13. James Morton Turner & Leah M. Nugent, 2016. "Charging up Battery Recycling Policies: Extended Producer Responsibility for Single-Use Batteries in the European Union, Canada, and the United States," Journal of Industrial Ecology, Yale University, vol. 20(5), pages 1148-1158, October.
    14. Thomas Böcker & Robert Finger, 2016. "European Pesticide Tax Schemes in Comparison: An Analysis of Experiences and Developments," Sustainability, MDPI, vol. 8(4), pages 1-22, April.
    15. Leonardo Trasande & R. Thomas Zoeller & Ulla Hass & Andreas Kortenkamp & Philippe Grandjean & John Peterson Myers & Joseph Digangi & Martine Bellanger & Russ Hauser & Juliette Legler & Niels E. Skakke, 2015. "Estimating Burden and Disease Costs of Exposure to Endocrine-Disrupting Chemicals in the European Union," Post-Print hal-01505537, HAL.
    16. Awasthi, Abhishek Kumar & Li, Jinhui, 2017. "Management of electrical and electronic waste: A comparative evaluation of China and India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 434-447.
    17. Henrik Hammar, Asa Lofgren and Thomas Sterner, 2004. "Political Economy Obstacles to Fuel Taxation," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-18.
    18. Baumol,William J. & Oates,Wallace E., 1988. "The Theory of Environmental Policy," Cambridge Books, Cambridge University Press, number 9780521322249, January.
    19. Finger, Robert & Möhring, Niklas & Dalhaus, Tobias & Böcker, Thomas, 2017. "Revisiting Pesticide Taxation Schemes," Ecological Economics, Elsevier, vol. 134(C), pages 263-266.
    20. Thomas Sadler, 2000. "Regulating chemical emissions with risk-based environmental taxation," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(2), pages 287-305, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lori Bennear & Robert Stavins, 2007. "Second-best theory and the use of multiple policy instruments," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 37(1), pages 111-129, May.
    2. Robert N. Stavins, 2011. "The Problem of the Commons: Still Unsettled after 100 Years," American Economic Review, American Economic Association, vol. 101(1), pages 81-108, February.
    3. Stavins, Robert, 2001. "Lessons From the American Experiment With Market-Based Environmental Policies," RFF Working Paper Series dp-01-53, Resources for the Future.
    4. Stavins, Robert, 2004. "Environmental Economics," RFF Working Paper Series dp-04-54, Resources for the Future.
    5. Steven Shavell, 2010. "The Corrective Tax versus Liability As Solutions to the Problem of Harmful Externalities," NBER Working Papers 16235, National Bureau of Economic Research, Inc.
    6. Sterner, Thomas & Hoglund, Lena, 2000. "Output-Based Refunding of Emission Payments: Theory, Distribution of Costs, and International Experience," Discussion Papers 10670, Resources for the Future.
    7. Stavins, Robert, 2003. "Market-Based Environmental Policies: What Can We Learn from U.S. Experience and Related Research?," Working Paper Series rwp03-031, Harvard University, John F. Kennedy School of Government.
    8. N. Keohane & A. Petsonk & A. Hanafi, 2017. "Toward a club of carbon markets," Climatic Change, Springer, vol. 144(1), pages 81-95, September.
    9. Söderholm, Patrik, 2011. "Taxing virgin natural resources: Lessons from aggregates taxation in Europe," Resources, Conservation & Recycling, Elsevier, vol. 55(11), pages 911-922.
    10. Benjamin Görlach, 2014. "Emissions Trading in the Climate Policy Mix — Understanding and Managing Interactions with other Policy Instruments," Energy & Environment, , vol. 25(3-4), pages 733-749, April.
    11. Olmstead, Sheila & Stavins, Robert, 2008. "Comparing Price and Non-Price Approaches to Urban Water Conservation," Working Paper Series rwp08-034, Harvard University, John F. Kennedy School of Government.
    12. Cui, Yi & Du, Xiaodong & Ma, Jiujie, 2020. "Agricultural Water right reforms and Irrigation Water Demand: A Quasi-Natural Experiment in China," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304364, Agricultural and Applied Economics Association.
    13. David Bonilla & David Banister & Uberto Salgado Nieto, 2022. "Tax or Clean Technology? Measuring the True Effect on Carbon Emissions Mitigation for Sweden and Norway," Energies, MDPI, vol. 15(11), pages 1-24, May.
    14. Johannes Urpelainen, 2010. "Enforcing international environmental cooperation: Technological standards can help," The Review of International Organizations, Springer, vol. 5(4), pages 475-496, December.
    15. Baldursson, Fridrik M & von der Fehr, N.-H.M.Nils-Henrik M, 2004. "Price volatility and risk exposure: on market-based environmental policy instruments," Journal of Environmental Economics and Management, Elsevier, vol. 48(1), pages 682-704, July.
    16. Lehmann, Paul, 2008. "Using a policy mix for pollution control: A review of economic literature," UFZ Discussion Papers 4/2008, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    17. Sterner, Thomas & Hoglund Isaksson, Lena, 2006. "Refunded emission payments theory, distribution of costs, and Swedish experience of NOx abatement," Ecological Economics, Elsevier, vol. 57(1), pages 93-106, April.
    18. Montero, Juan-Pablo, 2002. "Prices versus quantities with incomplete enforcement," Journal of Public Economics, Elsevier, vol. 85(3), pages 435-454, September.
    19. Baldursson, Fridrik M. & von der Fehr, Nils-Henrik M., 2008. "Prices vs. quantities: Public finance and the choice of regulatory instruments," European Economic Review, Elsevier, vol. 52(7), pages 1242-1255, October.
    20. Steven Shavell, 2011. "Corrective Taxation versus Liability as a Solution to the Problem of Harmful Externalities," Journal of Law and Economics, University of Chicago Press, vol. 54(S4), pages 249-266.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:11:y:2019:i:16:p:4344-:d:256754. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.