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The Use of Economic Instruments in Nordic Environmental Policy 2006–2009

image of The Use of Economic Instruments in Nordic Environmental Policy 2006–2009

The Nordic Council of Ministers publishes regular overview reports on the use of economic instruments in Nordic environmental policy. In this report, Part I presents an overview of the use of economic instruments with the main focus on changes during the years 2006 - 2009. Part II gives a brief overview of mixes of policy instruments (also other than economic instruments) and presents two case studies. There are generally few changes in the use of economic instruments since 2006, except for the introduction of the emissions trading system, EU ETS, and changes in vehicle registration tax systems to become more based on specific fuel use or CO2 emissions. In general, the tax systems could be made more effective and efficient by treating different sectors and fuels more equally.

English

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Executive Summary

This report consists of two parts. Part I presents an overview of the use of economic instruments in the environmental policies of the Nordic countries with the main focus on changes during the years 2006-2009. Part II gives a brief overview of the various policy instruments (i.e. also other than economic instruments) used in the countries towards the different environmental problems, and present two case studies assessing areas where a mix of instruments are used towards an environmental problem. There are generally few changes in the use of economic instruments since 2006. The introduction of the emissions trading system EU ETS and changes in most countries' vehicle registration tax systems to become more based on specific fuel use or CO2 emissions are the most important changes. In general the tax systems could be made more effective and efficient by treating different sectors and fuels more equally. Since CO2 emissions from power production now is covered by emissions trading the goals and policy instruments used to promote renewable electricity production should be reconsidered to see if they are still needed or should be redesigned. Also, the various policy instruments used towards waste handling should be reconsidered to avoid unnecessary overlap. The various policy instruments used to spur energy efficiency seems to supplement each other.

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