Page 76 - Module_5_en

Module
5 Discussion Questions

Table 8 illustrates just one way to categorize types of policy instruments.

9-12 December, 2013 Q: What other types of policy instruments are familiar to you?

A:

Q: What categories do your policy instruments fall under; are they represented in Table 8, or
a new category completely?

A:

Table 7

Instrument Instrument Description
Category

Economic: Economic instruments - also referred to as market-based instruments or financial incentives -
are measures that directly influence the price that a producer or consumer pays for a product,
behaviour or activity

Taradable Market Creation: A system of direct regulations can be used to create a
Permits tradable good or service and a market in which it can be traded. Previous
to the establishment of the market, the use of this good may have been
implicitly appropriated by polluters.

Examples include emission permits (i.e., CO ); development quotas (i.e.,
2
for tourism construction); water shares (wher the resource is indivisible in
space, but divisible in use [Panayotou 1998])

74 Integrated Analysis of Environmental Trends and Policies