Using Market Mechanisms in Environmental Regulation

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Market-based instruments are reckoned to be a cheaper and more efficient means of environmental protection than command and control. At present they are used on a limited scale, although both Europe and the United States are showing greater interest. This report looks at the types of market mechanisms, their use to date in Europe and the United States, and their potential for controlling greenhouse gases under the terms of the Kyoto Protocol. (32 pages)

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