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Savings from Using Economic Incentives

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Economic incentives, such as emission taxes, effluent trading, deposit refund systems, information reporting requirements, liability for harm caused by pollution, and voluntary programs have the potential to achieve environmental objectives at lower cost than traditional command and control regulations. This report estimates the economic savings from the more significant of existing incentive-based environmental programs and examines the potential for extending these and other programs to increase the savings. The greatest potential for future savings from economic incentives lies with the reduction of greenhouse gas emissions.

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ECONOMIC SAVINGS FROM USING ECONOMIC INCENTIVES FOR ENVIRONMENTAL POLLUTION CONTROL
by Robert C. Anderson, Resource Consulting Associates

with the assistance of Alan Carlin
Office of Economy and Environment, Office of Policy
U.S. Environmental Protection Agency, Washington, D.C. 20460
June 1999

Prepared under EPA Cooperative Agreement CR822795-01 with the Office of Economy and Environment, U.S. Environmental Protection Agency, Washington, D.C. 20460

Project Officer Alan Carlin
Office of Economy and Environment, Office of Policy
U.S. Environmental Protection Agency, Washington, D.C. 20460

Environmental Law Institute
1616 P Street, NW, Washington, D.C. 20036


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