Next steps in Environmental Policy and Economic Instruments

Paper for the DETR Academic Panel. This paper addresses what might at first sight be deemed an impossible question: how to advise government on further applications of economic instruments to environmental policy, within the constraints of not taxing the domestic sector, and of
avoiding areas where the income effects induce resistance (petrol prices, anything to do with farmers, etc). In other words, the task is to propose new ideas within a present political context where, it might be argued, most of the really useful instruments have been a priori ruled out.

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