Selecting Instruments for a Greenhouse Gas Reduction Policy in Finland

This report discusses the pro's and con's of different types of policy instruments for climate policy in Finland in relation to a systematic selection and evaluation of these instruments given the dual objectives of effective emission reduction and lowest possible economic cost. It is stressed that embedding of the evaluation process and the consideration of instrument packages next to single instruments are important ingredients. It can be expected that eventually not one but a few different policy packages achieve sufficiently high overall ratings. This will require a pondering of trade-offs in the framework of a tractable evaluation system, requiring the application of multi-criteria analysis (MCA).