Lecture

Equity and Acceptability in Environmental Policy

Description

This lecture discusses the importance of equity and acceptability in environmental policy instruments. The instructor explains the principles of equity in taxation, including horizontal and vertical equity. The capacity to contribute, burden definition, and environmental improvement considerations are also covered. The lecture emphasizes that instruments must be accepted to be effective, outlining typical conditions for acceptability. Ways to make economic instruments more acceptable, such as public budget neutrality and compensation strategies, are explored. A comparison of different instruments based on environmental effectiveness, cost-efficiency, equity, and feasibility is presented. The lecture concludes with practical policy questions and the benefits of using a mix of instruments to enhance effectiveness and coherence.

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