Economic Instruments in Chemicals Policy

Past Experiences and Prospects for Future Use

image of Economic Instruments in Chemicals Policy

This report investigates the potential for increased use of economic instruments, not the least taxes and charges, in chemcials policy. It provides a conceptual discussion of the role of different market-based instruments in controlling pollution based on chemicals production and use, and outlines a comprehensive overview and analysis of the European experiences of taxes and charges in chemicals policy during the last decades. A final chapter evaluates a set of carefully selected economic instruments targeted at specific chemical compounds and products. The cases have been chosen so as to illustrate different types of challenges in relying more extensively on economic instruments in chemicals policy, and they include the use of: (a) different types of two-stroke oils, (b) the substance nonylphenol (NP) and its ethoxylates (NPEs), which break down into NPs, and (c) ethylene glycol. The report has been commissioned by the Working Group on Environment and Economics under the Nordic Council of Ministers.



The scope for economic instruments in controlling chemicals use: three case studies

In this chapter we discuss and evaluate the scope for using economic instruments to manage the risks associated with the production and use of specific chemical compounds and products. We identify three cases for which economic instruments possibly could successfully complement other regulations restricting use and reducing any negative impacts on both health and the natural environment. These cases include the use of: (a) substance nonylphenol (NP) and its ethoxylates (NPEs), which break down into NP (section 4.2); (b) different types of two-stroke oils causing, for instance, marine pollution (section 4.3); and (c) 1,2-ethanediol (ethylene glycol) which primarily is used in the cooling water system of automobiles to prevent it from freezing (section 4.4).


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