Climate Policy Instruments: Overview

This lecture covers various instruments for climate policy, including voluntary approaches, regulation, and economic instruments. It discusses the reasons for using different instruments, such as optimal abatement solutions and paying for waste disposal. The lecture explores voluntary approaches like self-regulation, regulations to limit pollution, and economic instruments like emissions taxes. It also delves into the fundamental differences between regulation and economic instruments, as well as criteria for comparing these instruments based on effectiveness, cost-efficiency, equity, and feasibility. The effectiveness of instruments is assessed based on their ability to meet targets and allow for fine-tuning, highlighting the importance of commitment from authorities.