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On the Political Economy of Environmental Policy
Gebhard Kirchgässner Universität St. Gallen; CESifo (Center for Economic Studies and Ifo Institute for Economic Research) Friedrich Schneider Johannes Kepler University - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA) June 2002 CESifo Working Paper Series No. 741; U of St. Gallen Econ. Working Paper No. 2001-20 Abstract: In the past there was hardly any use of economic instruments in environmental policy, mainly command and control measures were used. More recently, ecological taxes as well as tradable permits became more popular and voluntary agreements have been implemented. Using the Public Choice approach we ask for the reasons of this wider acceptance of economic instruments. We conclude that the use of market based instruments in environmental policy has not increased very much and their impact on the actual situation is still rather low, but there is hope of at least some increase in the future.
Keywords: Environmental Policy, Ecological Taxes, Tradable Permits, Voluntary Agreements, Voting Behaviour, Public Bureaucracy, Interest Groups JEL Classifications: Q00 Working Paper SeriesDate posted: January 29, 2002 ; Last revised: September 01, 2004Suggested CitationContact Information
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