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Green prices

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  • Tran, Ngoc Bich
  • Ley, Eduardo

Abstract

"Getting the prices right"is a good starting point but is not sufficient for achieving environmentally efficient outcomes. Other policy interventions are often necessary to complement pricing policies. Moreover, when pricing is not at all feasible, regulatory and command-and-control policies must be used instead. This paper focuses on three interrelated themes at the core of the pricing problem. First, there is the incorporation of non-marketed activities with environmental consequences into aggregate measures of economic performance: the so-called"green-GDP."Second, there is the problem regarding the reliable estimation of the valuation of the shadow prices that properly reflect environmental externalities. Third, there is the issue of full-cost pricing that requires the pricing of environmental externalities for guiding both individual and public decision-making.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 6131.

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Date of creation: 01 Jul 2012
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Handle: RePEc:wbk:wbrwps:6131

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Keywords: Environmental Economics&Policies; Economic Theory&Research; Transport Economics Policy&Planning; Markets and Market Access; Climate Change Economics;

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