IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-00624095.html
   My bibliography  Save this paper

On markets and the conditions of a profitable use of economic instruments for environmental policy in countries in transition to market

Author

Listed:
  • Olivier Godard

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

Economic instruments for environmental policies could reach their full potential of efficiency in economies in which all commodities are exchanged on competitive markets and agents are maximising operators, ready for catching any market opportunity and sensitive to price signals. This ideal cannot be held as a realistic picture neither of OECD countries nor economies in transition to market, even if market mechanisms have gained, to a different degree, a considerable influence on their economic life. As far as environmental issues are concerned, contexts of action are of mixed-economies type, with an important role given to public regulation and public or collective financial circuits for environmental programmes. Happily, well designed economic instruments can do quite well for improving the cost-effectiveness of such policy contexts without waiting a full development of a market economy. This gains may be derived directly (positive incentives to minimise abatement costs), or by opportunity (alleviating technological and administrative rigidities). They can also result from reforms and new institutional settings they make possible ('green tax reform', or setting up water communities) on top of their direct incentive dimension.

Suggested Citation

  • Olivier Godard, 1998. "On markets and the conditions of a profitable use of economic instruments for environmental policy in countries in transition to market," Post-Print halshs-00624095, HAL.
    • Handle: RePEc:hal:journl:halshs-00624095
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00624095
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-00624095/document
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dallas Burtraw, 1996. "The So2 Emissions Trading Program: Cost Savings Without Allowance Trades," Contemporary Economic Policy, Western Economic Association International, vol. 14(2), pages 79-94, April.
    2. Olivier Godard, 1997. "Social Decision-Making under Scientific Controversy, Expertise, and the Precautionary Principle," Post-Print halshs-00624027, HAL.
    3. Conrad, Klaus & Kohn, Robert E, 1996. "The US market for SO2 permits : Policy implications of the low price and trading volume," Energy Policy, Elsevier, vol. 24(12), pages 1051-1059, December.
    4. Olivier Godard & Christine Cros, 1998. "The economic design of a potential tradable permit system for SO2 emissions in the European Union," Post-Print hal-00622840, HAL.
    5. Olivier Godard & Olivier Beaumais, 1993. "Économie, croissance et environnement. De nouvelles stratégies pour de nouvelles relations," Revue Économique, Programme National Persée, vol. 44(1), pages 143-176.
    6. Paul Ekins, 1995. "Rethinking the costs related to global warming: A survey of the issues," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 6(3), pages 231-277, October.
    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. Olivier Godard, 1998. "Les permis d'émission négociables et la lutte contre la pollution atmosphérique," Post-Print hal-00622857, HAL.
    2. Robert N. Stavins, 1998. "What Can We Learn from the Grand Policy Experiment? Lessons from SO2 Allowance Trading," Journal of Economic Perspectives, American Economic Association, vol. 12(3), pages 69-88, Summer.
    3. B Hansjürgens, 1998. "The Sulfur Dioxide Allowance-Trading Program in the USA: Recent Developments and Lessons to be Learned," Environment and Planning C, , vol. 16(3), pages 341-361, June.
    4. Olivier Godard, 1998. "Concertation et incitations efficaces, deux objectifs incompatibles ? Une analyse à partir du dispositif de gestion des déchets d'emballages ménagers en France," Post-Print halshs-00618321, HAL.
    5. Olivier Godard, 1996. "Economic Expertise And Decision-Making In Controversial Universes," Post-Print halshs-00625518, HAL.
    6. Olivier Godard, 1997. "Social Decision-Making under Scientific Controversy, Expertise, and the Precautionary Principle," Post-Print halshs-00624027, HAL.
    7. Larson, Donald F. & Parks, Paul, 1999. "Risks, lessons learned, and secondary markets for greenhouse gas reductions," Policy Research Working Paper Series 2090, The World Bank.
    8. van den Bergh, J.C.J.M. & Botzen, W.J.W., 2015. "Monetary valuation of the social cost of CO2 emissions: A critical survey," Ecological Economics, Elsevier, vol. 114(C), pages 33-46.
    9. Stavins, Robert, 2001. "Lessons From the American Experiment With Market-Based Environmental Policies," RFF Working Paper Series dp-01-53, Resources for the Future.
    10. Brockmann, Karl Ludwig & Koschel, Henrike & Schmidt, Tobias F. N., 1998. "Tradable SO-2-permits in the European Union: a practicable scheme for public utilities," ZEW Discussion Papers 98-15, ZEW - Leibniz Centre for European Economic Research.
    11. Considine, Timothy J. & Larson, Donald F., 2006. "The environment as a factor of production," Journal of Environmental Economics and Management, Elsevier, vol. 52(3), pages 645-662, November.
    12. Jon Rezek & Benjamin F. Blair, 2005. "Abatement Cost Heterogeneity In Phase I Electric Utilities," Contemporary Economic Policy, Western Economic Association International, vol. 23(3), pages 324-340, July.
    13. repec:spo:wpmain:info:hdl:2441/eu4vqp9ompqllr09hi4ipb1c8 is not listed on IDEAS
    14. Brookshire, David S & Burness, H Stuart, 2001. "The Informational Role of the EPA SO2 Permit Auction," Journal of Regulatory Economics, Springer, vol. 20(1), pages 43-60, July.
    15. Marc Gronwald & Janina Ketterer & Stefan Trück, 2011. "The Dependence Structure between Carbon Emission Allowances and Financial Markets - A Copula Analysis," CESifo Working Paper Series 3418, CESifo.
    16. repec:dgr:uvatin:20020095 is not listed on IDEAS
    17. Stavins, Robert & Hahn, Robert & Cavanagh, Sheila, 2001. "National Environmental Policy During the Clinton Years," RFF Working Paper Series dp-01-38, Resources for the Future.
    18. Ben-David, Shaul & Brookshire, David S. & Burness, Stuart & McKee, Michael & Schmidt, Christian, 1999. "Heterogeneity, Irreversible Production Choices, and Efficiency in Emission Permit Markets," Journal of Environmental Economics and Management, Elsevier, vol. 38(2), pages 176-194, September.
    19. Zhao, Jinhua, 2003. "Irreversible abatement investment under cost uncertainties: tradable emission permits and emissions charges," Journal of Public Economics, Elsevier, vol. 87(12), pages 2765-2789, December.
    20. Fowlie, Meredith, 2005. "Emissions Trading, Electricity Industry Restructuring and Investment in Pollution Abatement," 2005 Annual meeting, July 24-27, Providence, RI 19265, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    21. Robert W. Hahn & Robert N. Stavins, 2011. "The Effect of Allowance Allocations on Cap-and-Trade System Performance," Journal of Law and Economics, University of Chicago Press, vol. 54(S4), pages 267-294.
    22. Toman, Michael & Powell, Mark & Lile, Ron, 1998. "Implementing the Clean Development Mechanism: Lessons from U.S. Private-Sector Participation in Activities Implemented Jointly," RFF Working Paper Series dp-99-08, Resources for the Future.

    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:hal:journl:halshs-00624095. 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: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.