Policy instruments for curbing CO 2 emissions: The case of the Netherlands

Lans Bovenberg

Environmental & Resource Economics, 1993, vol. 3, issue 3, 233-244

Abstract: Taxes may seem to be the most attractive instrument for curbing the emissions of carbon dioxide. This paper, however, argues that environmental taxes involve a number of serious complications — especially in an open economy riddled with market imperfections like the Netherlands. Therefore, a wide-ranging policy mix is called for. As far as households and sheltered sectors are concerned, regulation can continue to play a major role. Within the context of unilateral policies aimed at exposed sectors, the combination of subsidies and voluntary agreements may be more cost effective than the tax instrument. Copyright Kluwer Academic Publishers 1993

Keywords: Energy conservation; environmental taxation; open economies; second best; international coordination (search for similar items in EconPapers)
Date: 1993
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DOI: 10.1007/BF00313160

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