European Environment Agency (EEA)

Market-based instruments for environmental policy in Europe

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Courtesy of European Environment Agency (EEA)

This report presents an assessment of the main and most recent developments in the use of market-based instruments in European environmental policy. The report covers a range of instruments which are used as tools to achieve environmental objectives. These instruments include: environmental taxes, charges and deposit-refund systems, environmental tax reform, emissions trading schemes, subsidies, and liability and compensation requirements. The report finds a steadily growing application of market-based instruments across Europe. It also identifies the need for cost-effective policy measures in order to make authorities more aware of the advantages of implementing MBIs. The report 'Using the market for cost-effective environmental policy' is a shorter version of this report.

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