Categories of mbis, Public Economics

Categories of MBIs

In below Table, we have mentioned certain market-based instruments - both direct and indirect. The direct instruments, viz effluent charges, tradable permits and deposit refund schemes, are imposed on the polluting activity itself. On the other hand, indirect instruments, as you can see from Table, are imposed on inputs used for production of the polluting good. The MBIs can be broadly put under seven categories on the basis of the type of economic instruments. These are

  1. Fiscal instruments
  2. Financial instruments
  3. Charge instruments,
  4. Deposit-refund system and bonds,
  5. Market creations,
  6. Liability, and
  7. Redefining property rights

Table: Taxonomy of Market-based Instruments

311_Categories of MBIs.png

Taxes and user charges have the advantage that they reduce the compliance cost of attaining a set target thereby enhancing economy wide performance. The disadvantage with taxes and charges, however, is that it is politically difficult to raise them to optimal level. Subsidies and soft loans/grants on pollution abatement inputs are highly popular both in developed and developing countries. There is the danger of dead-weight loss (defined as the difference between the monetary values of what the government loses and what the beneficiaries gain due to the subsidy) largely due to high costs relative to benefits.

Posted Date: 12/18/2012 7:01:09 AM | Location : United States







Related Discussions:- Categories of mbis, Assignment Help, Ask Question on Categories of mbis, Get Answer, Expert's Help, Categories of mbis Discussions

Write discussion on Categories of mbis
Your posts are moderated
Related Questions
Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4


One of these is deregulator or privatization of public enterprises or utilities. Deregulation is a world wide phenomenon. But experience of power failure in California and Mumbai r

You can choose any one from the four topics listed in the following: I. Health economic theory and practice 1. Based on your work experience, expertise, or the field

explain the stages and various coordination mechanisms involved in policy processes


Question: Describe the main measures of size and/or cutoff point below which economies are classed as small? In 1982 the Development Committee of the World Bank and the Int

One shortcoming of neoclassical welfare economics is that it does not take into account the institutional structure of collective decision making. To draw normative conclusions abo

Select a current political, social or environmental issue that is receiving coverage in the media, or choose an organisation you feel needs a better public relations approach, and

Mr. X enters into a contract with Mr. Z under which Z agreed to build a customized telescope for X for $500. The value of the completed telescope to X will be $600. Expecting that