This paper examines the extent to which various environmental policy instruments meet major evaluation criteria, including cost-effectiveness, distributional equity, minimization of risk in the presence of uncertainty, and political feasibility. Instruments considered include emissions taxes, tradable emissions allowances, subsidies for emissions reductions, performance standards, technology mandates, and research and development subsidies.
Goulder, L.H. and I.W.H. Parry. "Instrument Choice in Environmental Policy." Resources For the Future, RFF DP 08-07, Apr 2008.
