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Flexibility mechanisms in environmental regulations: Their use and impacts

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  • Nils Axel Braathen

    (OECD)

Abstract

Based on an in-depth literature review and responses to a survey among OECD member countries, this paper discusses the use of flexibility mechanisms in environmental regulations. Such mechanisms can provide flexibility as to how a given environmental improvement is achieved, regarding where environmental improvements take place, when they take place, as regards who is to achieve the improvements, and for which pollutants the emission reductions are to be achieved.The literature on these issues is limited, but it is clear that some such mechanisms can have important environmental and economic impacts. In certain cases, flexibility mechanisms which have provided important benefits in terms of cost reductions have proven to also shift pollution to areas where the negative health impacts are larger. Hence, it will be useful to carefully assess the related social costs and benefits of both existing and new flexibility mechanisms.

Suggested Citation

  • Nils Axel Braathen, 2019. "Flexibility mechanisms in environmental regulations: Their use and impacts," OECD Environment Working Papers 151, OECD Publishing.
    • Handle: RePEc:oec:envaaa:151-en
    DOI: 10.1787/a6d3ef45-en
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    More about this item

    Keywords

    air pollution; emission trading; environmental regulations; flexibility mechanisms; government policy; valuation of environmental externalities;
    All these keywords.

    JEL classification:

    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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