• No single instrument is clearly superior along all the dimensions relevant to policy
choice; even the ranking along a single dimension often depends on the circumstances
involved.
• Significant trade-offs arise in the choice of instrument. In particular, assuring a reasonable
degree of fairness in the distribution of impacts, or ensuring political feasibility,
often will require a sacrifice of cost-effectiveness.
• It is sometimes desirable to design hybrid instruments that combine features of various
instruments in their “pure” form.
• For many pollution problems, more than one market failure may be involved, which
may justify (on efficiency grounds, at least) employing more than one instrument.
• Potential interactionsamongenvironmental policy instruments are a matter of concern,
as are possible adverse interactions between policies simultaneously pursued by separate
jurisdictions.
• No single instrument is clearly superior along all the dimensions relevant to policychoice; even the ranking along a single dimension often depends on the circumstancesinvolved.• Significant trade-offs arise in the choice of instrument. In particular, assuring a reasonabledegree of fairness in the distribution of impacts, or ensuring political feasibility,often will require a sacrifice of cost-effectiveness.• It is sometimes desirable to design hybrid instruments that combine features of variousinstruments in their “pure” form.• For many pollution problems, more than one market failure may be involved, whichmay justify (on efficiency grounds, at least) employing more than one instrument.• Potential interactionsamongenvironmental policy instruments are a matter of concern,as are possible adverse interactions between policies simultaneously pursued by separatejurisdictions.
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