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On the Political Economy of Environmental Policy

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  • Gebhard Kirchgässner
  • Friedrich Schneider

Abstract

In the past there was hardly any use of economic instruments in environmental policy, mainly command and control measures were used. More recently, ecological taxes as well as tradable permits became more popular and voluntary agreements have been imple-mented. Using the Public Choice ap-proach we ask for the reasons of this wider acceptance of economic instru-ments. We conclude that the use of market based instru-ments in environmental policy has not in-creased very much and their impact on the actual situation is still rather low, but there is hope of at least some increase in the future.

Suggested Citation

  • Gebhard Kirchgässner & Friedrich Schneider, 2002. "On the Political Economy of Environmental Policy," CESifo Working Paper Series 741, CESifo.
    • Handle: RePEc:ces:ceswps:_741
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    References listed on IDEAS

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    1. Hibbs, Douglas A., 1977. "Political Parties and Macroeconomic Policy," American Political Science Review, Cambridge University Press, vol. 71(4), pages 1467-1487, December.
    2. de Bovenberg, A Lans & Mooij, Ruud A, 1994. "Environmental Levies and Distortionary Taxation," American Economic Review, American Economic Association, vol. 84(4), pages 1085-1089, September.
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    JEL classification:

    • Q00 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - General

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