Categories of mbis, Public Economics

Assignment Help:

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.


Related Discussions:- Categories of mbis

Optimal harvesting age, Normal 0 false false false EN-I...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Coase's bargaining solution, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Welfare and subsidies, what are the costs and consequences of providing the...

what are the costs and consequences of providing the subsidies and welfare?

Comparison of gdp, Normal 0 false false false EN-IN X...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Types of inefficiencies caused by the public sector, QUESTION a) How ...

QUESTION a) How would the strategy of a firm faced with repeated games differ from that faced with sequential games? b) What do you understand by an optimal level of poll

The planning process of an e-government website, QUESTION 1 (i) The im...

QUESTION 1 (i) The implementation of e-Government presents a number of challenges to both the Government and citizens. Discuss these challenges using appropriate examples.

Prepare a news release announcing the launch of network, The news release i...

The news release is the ‘granddaddy' of public relations writing vehicles. (a) As a PR student, show the main points you would consider when attempting to write an effective ne

Importance of valuation of environment, Normal 0 false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Public debt, what are the principles of public debt?

what are the principles of public debt?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd