Economic theory and empirical models suggest that economic
instruments should help us to meet environmental goals at lower
cost. Practical experience, however, shows that the cost savings of
emission trading are smaller than expected and charges usually have
had small incentive impacts. This book gives a comprehensive review
of economic theory, simulation models, and practical experience
with the use of economic instruments. The book focuses on air
pollution control. Part I examines theoretical aspects and
simulation modelling in a national context. Part II surveys the
practical experience in a variety of countries. Part III explores
international issues, such as joint implementation. Because of its
blend of theoretical and empirical research, the book should prove
interesting for both economists and those interested in
environmental policy.
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