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On the Use of Market Based Instruments to Reduce Air Pollution in Asia

Journal article
Authors Jessica Coria
Gunnar Köhlin
Jintao Xu
Published in Sustainability
Volume 11
Issue 18
ISSN 2071-1050
Publication year 2019
Published at Department of Economics, Environmental Economics Unit
Language en
Links https://doi.org/10.3390/su11184895
Keywords Key Words: marked-based instruments, Asia, developing countries, taxes, subsidies, emissions permits, informational policies, energy production, transport, domestic heating.
Subject categories Economics

Abstract

The high rates of economic activity and environmental degradation in Asia demand the implementation of creative and cost-effective environmental policy instruments that provide polluters with more flexibility to find least-cost solutions to pollution reduction. Despite their many theoretical advantages, the use of market-based instruments (MBIs) is a relatively recent phenomenon in Asia, partly due to policymakers being unfamiliar with MBIs and countries lacking the institutional capacity to implement and enforce them. This paper reviews the Asian experience with MBIs intended to reduce air pollution emissions and synthetizes lessons to be drawn and areas for improvement.

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