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Economic Instruments in Environmental Policy: Lessons from the OECD Experience and their Relevance to Developing Economies


  • Jean-Philippe Barde


In recent years, there has been a rapid spread of economic instruments (EIs) in environmental policies of OECD Member countries. The application of EIs has gained wider political acceptability and, in a growing number of cases, they have come to have incentive rather than merely revenue-raising effects. In Sweden, eco-taxes have been introduced as part of a broad fiscal reform, while in other countries the approach is more piecemeal. Virtually without exception, EIs are employed in combination with regulations and other policy instruments. Developing countries stand to learn from the OECD experience with EIs, but they often face unique challenges as well as opportunities in applying such instruments. Resource and other prices have historically been distorted in such economies, so correcting such distortions is a prerequisite to the effective use of EIs. Also, underdeveloped markets, public enterprises with soft budget constraints, and high rates of inflation can all undermine the ... Ces dernières années, on a pu constater une diffusion rapide des instruments économiques (IEs) dans les politiques environnementales des pays Membres de l'OCDE. L'application des IEs a été mieux acceptée politiquement et, très souvent, leurs effets se sont révélés plus incentifs que générateurs de revenus. En Suède, l'introduction des taxes écologiques a fait partie de la réforme fiscale générale alors que dans d'autres pays, l'approche s'effectue surtout au cas par cas. Les pays en développement peuvent tirer profit des expériences des pays Membres de l'OCDE avec les IEs, mais ils sont souvent confrontés à des défis ainsi qu'à des opportunités exceptionnels pour l'application de ces instruments. Historiquement, dans de telles économies, les prix des ressources naturelles et certains autres prix ont subi des distorsions et le rééquilibrage de ces distorsions est une des conditions préalables à l'utilisation efficace des IEs. Il faut également noter que les marchés sous-développés ...

Suggested Citation

  • Jean-Philippe Barde, 1994. "Economic Instruments in Environmental Policy: Lessons from the OECD Experience and their Relevance to Developing Economies," OECD Development Centre Working Papers 92, OECD Publishing.
  • Handle: RePEc:oec:devaaa:92-en

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    References listed on IDEAS

    1. Hall, Robert E, 1978. "Stochastic Implications of the Life Cycle-Permanent Income Hypothesis: Theory and Evidence," Journal of Political Economy, University of Chicago Press, vol. 86(6), pages 971-987, December.
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    3. Jeffrey D. Sachs, 1989. "Developing Country Debt and the World Economy," NBER Books, National Bureau of Economic Research, Inc, number sach89-3, January.
    4. Philippe Callier, 1989. "Debt Relief and Adjustment Incentives in a Financially Open Economy: Comment on Corden," IMF Staff Papers, Palgrave Macmillan, vol. 36(2), pages 514-522, June.
    5. W. Max Corden, 1988. "Debt Relief and Adjustment Incentives," IMF Staff Papers, Palgrave Macmillan, vol. 35(4), pages 628-643, December.
    6. Alain Ize & Guillermo Ortiz, 1987. "Fiscal Rigidities, Public Debt, and Capital Flight," IMF Staff Papers, Palgrave Macmillan, vol. 34(2), pages 311-332, June.
    7. Jeffrey D. Sachs, 1989. "Introduction to "Developing Country Debt and the World Economy"," NBER Chapters,in: Developing Country Debt and the World Economy, pages 1-34 National Bureau of Economic Research, Inc.
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    Cited by:

    1. Eugenio Figueroa & Roberto Pastén, 2009. "Country-specific environmental Kuznets curves: a random coefficient approach applied to high-income countries," Estudios de Economia, University of Chile, Department of Economics, vol. 36(1 Year 20), pages 5-32, June.
    2. Lanoie, Paul & Laplante, Benoît & Tanguay, Georges A., 1994. "La firme et l’environnement," L'Actualité Economique, Société Canadienne de Science Economique, vol. 70(2), pages 97-111, juin.

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