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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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Introduction

Command-and-control is comforting to politicians and people: governments know what they are asking for, people know what they are getting, companies know what they are supposed to deliver; the only people who do not like it are economists (The Economist, 2 September 1989)

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