As Thomas Sterner points out, the economic "toolkit"for dealing
with environmental problems has become formidable. It includes
taxes, charges, permits, deposit-refund systems, labeling, and
other information disclosure mechanisms. Though not all these
devices are widely used, empirical application has started within
some sectors, and we are beginning to see the first systematic
attempts at an advanced policy design that takes due account of
market-based incentives.
Sterner's book is an attempt to encourage more widespread and
careful use of economic policy instruments. Intended primarily for
application in developing and transitional countries, the book
compares the accumulated experiences of the use of economic policy
instruments in the U.S. and Europe, as well as in select rich and
poor countries in Asia, Africa, and Latin America. Ambitious in
scope, the book discusses the design of instruments that can be
employed in a wide range of policy areas, including transportation,
industrial pollution, water pricing, waste, fisheries, forests, and
agriculture.
While deeply rooted in economics, Policy Instruments for
Environmental and Natural Resource Management is informed by
perspectives drawn from political, legal, ecological, and
psychological research. Sterner notes that, in addition to meeting
requirements for efficiency, the selection and design of policy
instruments must satisfy criteria involving equity and political
acceptability. He is careful to distinguish between the
well-designed plans of policymakers -- and the resulting behavior
of society.
A copublication of Resources for the Future, the World Bank, and
the Swedish International Development Agency (SIDA).
General
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