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2. GOVERNMENT POLICIES ON ECONOMIC INCENTIVES

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United States Experience with Economic Incentives for Pollution Control


From the early days of the EPA, policy makers have recognized that economic instruments held the potential to improve the cost effectiveness of environmental management. EPA began to experiment with the use of economic incentives in the early 1980s. More recently, the Clinton administration expressed strong support for greater reliance on economic incentives in environmental management. This chapter highlights some of the key reports, executive orders, environmental management innovations, and legislation that demonstrate the growing commitment to expanding the use of innovative, cost-effective approaches to environmental management.

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