EnvStud 675 – Using the market for cost-effective environmental policy Market-based instruments in
Content:
Market-based instruments can be particularly effective tools for dealing with the four major areas of action of the EU 6th environmental action programme, namely: tackling climate change, preserving nature and biodiversity, protecting environment and human health, and through the sustainable use of resources and management of wastes. They do so by addressing the sources of environmental pollution
Course Lecturer: Gerhard Berchtold, PhD
ECTS credits: 6
Market-based instruments can be particularly effective tools for dealing with the four major areas of action of the EU 6th environmental action programme, namely: tackling climate change, preserving nature and biodiversity, protecting environment and human health, and through the sustainable use of resources and management of wastes.
Coursebook:
Using the market for cost-effective
environmental policy
Market-based instruments in
Cover design: EEA
Cover photo © Albert Pujol, 2005
Left photo © JoJo Studio, 2005
Right photo © JoJo Studio, 2005
Layout: Brandpunkt A/S, EEA
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ISBN 92-9167-810-4
ISSN 1725-9177
© EEA, Copenhagen 2006
Why market-based instruments?
Much environmental pollution and natural resource depletion comes from incorrect pricing of the goods and services we produce and consume. 'Market-based instruments' (MBIs) — such as taxes, charges, subsidies and tradable permits help to realise simultaneously environmental, economic and social policy objectives by taking account of the hidden costs of production and consumption to people's health and the environment, in a cost-effective way. These hidden costs include damage from air and water pollution, waste disposal, soils and species losses, climate change and the floods, heat waves and storms that it brings, and health costs. These costs are often paid by people who are not even benefiting from the use of these products, such as the next generation of children, the Arctic peoples who are on the receiving end of
Market-based instruments can be particularly effective tools for dealing with the four major areas of action of the EU 6th environmental action programme, namely: tackling climate change, preserving nature and biodiversity, protecting environment and human health, and through the sustainable use of resources and management of wastes. They do so by addressing the sources of environmental pollution most relevant to these areas such as:
• emissions from power stations, industry, cars and aircraft (tradable emission permits, fuel taxes);
• increasing waste generation by households and other actors (waste disposal taxes, taxes on packaging, incentives for recycling);
• emissions resulting from houses and offices (incentives for improved insulation and energy efficient heating systems);
• emissions resulting from agricultural activities (fertiliser and pesticide taxes).
- Teacher: Gerhard Berchtold
- Teacher: Peter Hodecek