Incentive-Based Policy Design for Pollution Control and Biodiversity Conservation:A Review

Frans de Vries and Nick Hanley

No 2015-21, Discussion Papers in Environment and Development Economics from University of St. Andrews, School of Geography and Sustainable Development

Abstract: This paper provides a succinct review of the main developments in the literature on incentive - based policy mechanisms in the contexts of pollution control and biodiversity conservation, dating from the early beginnings of the science in the 1960s. A focal point in the review is on the design features of these policy mechanisms. Key developments in policy design were originally established in controlling externalities arising from pollution and have since been extended to policy design tailored towards biodiversity conservation. Special emphasis is given to the spatial characteristics of the environmental problems underlying both pollution control and biodiversity conservation. The paper concludes by drawing some lessons and setting out elements of a future research agenda in both policy domains.

Keywords: Environmental Policy Instruments; Environmental Markets; Mechanism Design; Spatial Coordination; Conservation Auctions (search for similar items in EconPapers)
JEL-codes: D44 D82 Q57 Q58 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2015-12
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Journal Article: Incentive-Based Policy Design for Pollution Control and Biodiversity Conservation: A Review (2016)
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