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Missing Environmental Markets and the Design of "Market Based Instruments"

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Author Info
Peter Bardsley
Abstract

Market failure is pervasive in the environmental sector, and naturally occurring markets are, in many cases, unlikely to produce socially optimal environmental outcomes. Despite this, the case for using “market based instruments” has recently become popular in the Australian environmental policy debate. The purpose of this paper is to survey some of the broad issues that arise in this debate. What do we mean by market based instruments, and what is the conceptual foundation for their use? What contribution can they make to Australian environmental policy? What needs to be done to improve policy development and implementation, in order to use these new instruments effectively?

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File URL: http://www.economics.unimelb.edu.au/SITE/research/workingpapers/wp03/891.pdf
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Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 891.

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Length: 12 pages
Date of creation: 2003
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Handle: RePEc:mlb:wpaper:891

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  1. Jeff Borland & Yi-Ping Tseng & Roger Wilkins, 2005. "Experimental and Quasi-Experimental Methods of Microeconomic Program and Policy Evaluation," Melbourne Institute Working Paper Series wp2005n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne. [Downloadable!]
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