Types of Instruments for Sustainable Development

This lecture explores the grand families of instruments for sustainable development, focusing on environmental and climate policy. It delves into the criteria for comparing these instruments, emphasizing effectiveness, cost-efficiency, equity, and feasibility. Various types of instruments are discussed, including voluntary approaches, command-and-control regulations, and economic instruments. The lecture also examines the fundamental differences between these approaches, highlighting the role of market actors and government involvement. Criteria for comparing instruments are analyzed, such as environmental effectiveness, cost-efficiency, equity, and feasibility. The effectiveness of different instruments is assessed, considering their ability to meet targets, guarantee outcomes, and allow for fine-tuning. The lecture concludes by discussing cost-efficiency in abatement measures, emphasizing the importance of taking the cheapest efforts first to minimize total costs.