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About: Market-based environmental policy instruments     Goto   Sponge   NotDistinct   Permalink

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Type: companyyago:WikicatMarket-basedPolicyInstrumentsyago:Artifact100021939yago:Device103183080yago:Instrument103574816yago:Instrumentality103575240yago:Object100002684yago:PhysicalEntity100001930yago:Whole100003553 New Facet based on Instances of this Class

In environmental law and policy, market-based instruments (MBIs) are policy instruments that use markets, price, and other economic variables to provide incentives for polluters to reduce or eliminate negative environmental externalities. MBIs seek to address the market failure of externalities (such as pollution) by incorporating the external cost of production or consumption activities through taxes or charges on processes or products, or by creating property rights and facilitating the establishment of a proxy market for the use of environmental services. Market-based instruments are also referred to as economic instruments, price-based instruments, new environmental policy instruments (NEPIs) or new instruments of environmental policy.