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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.

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How do the economic instruments work?

In this chapter we present some brief assessments of how the various economic instruments in the Nordic countries have worked, based mainly on recent evaluations or assessments we have been able to find in the respective countries (either in native language or in English). The previous report in the series (TemaNord, 2006) has evaluation of the functioning of economic instruments as a primary purpose, so our assessment here is deliberately limited in scope and focused on changes in the policy instruments since 2006. First we present some criteria for assessing environmental policy instruments.

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