Market-Based Instruments: An Environmental Policy Option Supportive of Free Trade

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Authors

Will, Abbe H.

Issue Date

2002

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Thesis

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en_US

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Abstract

Environmental policy and international trade are generally perceived as inharmonious, however research indicates that strong environmental policy need not detract from trade-induced economic gains. Certain market-based instruments, such as tradable permits for the rights to pollute, are currently being explored through the Kyoto Protocol as an environmental policy option on a global scale. The advantages of market-based instruments include increased efficiency, which translates to decreased costs for both producers and consumers compared to the traditional "command-and-control" instruments. The creation and implementation of more efficient environmental policy will make the simultaneous pursuit of environmental preservation and free trade not only possible, but also mutually supportive.

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ii, 30 p.

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U.S. copyright laws protect this material. Commercial use or distribution of this material is not permitted without prior written permission of the copyright holder.

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