Proceedings of the Workshop on Economic Instruments in Environmental Policy

Different aspects of the use of economic incentives in environmental policy are dealth with in four papers that were presented in the workshop arranged by the Government Institute for Economic Research on the 9th of November 1990. Jean-Philippe Barde presents definitions of economic instruments and describes recent trends in their use for environmental protection in OECD countries. In the paper by Ilkka Savolainen a model system is presented for the estimation of future SO2 emissions in Finland. The model system is employed to find cost-effective emission reduction strategies under given sulphur deposition targets. Olli Tahvonen discusses the role different types of economic instruments like emission charges and emission trading might have in practical environmental policy. A model is presented to attain target sulphur deposition levels in Finland and nearby regions of the Soviet Union with minimum possible abatement costs. Tellervo Kylä-Harakka-Ruonala discusses the prerequisities and adequate preparations for the environmental charges from the point of view of industry