ABSTRACT
One of the most significant goals of environmental policy is the reduction of emissions of environmentally affective substances such as air or water pollutants and greenhouse gases (GHG). To attain this goal, policy instruments have been devised in economic theory and are currently being implemented in various ways in many developed countries and regions. Some instruments rely on the behavior of economic agents in economic activities and thus are called market-based instruments (MBIs). These include environmental taxes, subsidies, and tradable permit systems.
