Economic literature generally favours market-based instruments for regulating environmental externalities since they ensure compliance at the least cost to society. Emission taxes have been increasingly introduced internationally, with the focus shifting to CO2 after the adoption of the Kyoto...

Environmental Problems A Market Failure -- Choice of Policy Instruments Tax Regulation or Subsidy -- Another Solution to Environmental Problems Prepoety Right Approach -- Uncertainty and Policy Choice Price Control or Quantity Control -- Waste Reduction and the Effectiveness of Imposing Disposal...