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Instrument Mixes for Environmental Policy: How Many Stones Should be Used to Kill a Bird?

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  • Braathen, Nils Axel

Abstract

How many instruments should be used to address a particular environmental problem? That is the question this article addresses. According to the "Tinbergen rule," one instrument per target is needed. The existence of any non-environmental market failures affecting the environmental problem at hand will also require one additional instrument per market failure. However, detailed case studies reveal that it is no simple task to count neither the number of relevant targets, nor the number of instruments applied. While there are good reasons to apply several instruments in combination to address a given environmental problem (non-environmental market failures, "multi-aspect" character of many problems, cases where one instrument underpin the use of other instruments, the need to address non-environmental policy concerns, etc.), it is sometimes difficult to see that such arguments have been the main explanations for the instrument mixes in practical use. There are also cases where the environmental effectiveness or economic efficiency of an instrument mix is hampered by lacking instruments.

Suggested Citation

  • Braathen, Nils Axel, 2007. "Instrument Mixes for Environmental Policy: How Many Stones Should be Used to Kill a Bird?," International Review of Environmental and Resource Economics, now publishers, vol. 1(2), pages 185-235, May.
    • Handle: RePEc:now:jirere:101.00000005
    DOI: 10.1561/101.00000005
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    More about this item

    Keywords

    Instrument mixes; Environmental policy; Ex post evaluations; Environmental effectiveness; Economic efficiency; Non-point sources of water pollution; Household waste; Energy efficiency;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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