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The Range of Environmental Policy Tools

Market Based
Instruments and
Fiscal Mechanisms
Voluntary Stewardship
and Corporate
Environmental Governance
Government with the key role as regulator; imposes rules and limits to activities through regulation. Market forces as the key role facilitated through regulation - engage price mechanism to motivate behavior toward an environmental objective Cooperative relations among government, industry & mediating public interests setting performance expectations through binding agreements. Citizen control through the forces of public scrutiny and citizen purchasing power to influence environmental behavior of a target group Self imposed voluntary initiatives by regulated parties motivated through a stewardship ethic, social conscience and corporate governance



Prescriptive > ---------- > Greater Flexibility
Deterrent based > ---------- > Greater use of Incentives (in combination with deterrents)
Compliance objective > ---------- > Performance focused
Government acting alone > ---------- > Shared responsibility - partnerships
Higher government assurance > ---------- > Lower government assurance

Additional tools:


Page Information

Updated: Jun 16, 2015