3. THE ECONOMIC EFFICIENCY AND ENVIRONMENTAL EFFECTS OF INCENTIVE SYSTEMS

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This chapter has seven main sections:
3.1 Introduction
3.2 Traditional Regulatory Approaches
3.3 Incentive-Based Mechanisms
3.4 Relative Cost-Effectiveness
3.5 Economic Instruments and Technical Change
3.6 Impacts on Enviornmental Quality
3.7 Finding the Right Instrument for the Problem

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