Types of policies for reducing pollution, Public Economics

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Types of Policies for Reducing Pollution

Globally three types of policies are pursued, viz.,

i) Command and control (CAC) measures,

ii) Market-based instruments (MBI), and

iii) Government production or expenditure.

There are several policy instruments under each of these policy options. These instruments can be of two types: direct and indirect. We present a taxonomy of policy instruments for pollution abatement in Table below.

Table: Taxonomy of Policy Instruments for Reducing Pollution

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