Open this publication in new window or tab >>2025 (English)In: Journal of Economic Issues, ISSN 0021-3624, E-ISSN 1946-326X, Vol. 59, no 2, p. 438-444Article in journal (Refereed) Published
Abstract [en]
This article questions the neoclassical claim that compared to command-and-control instruments such as performance standards, economic policy instruments (e.g., taxes or emission allowance schemes) represent a superior policy approach to mitigate industrial pollution. Based on recent research, we argue that the ongoing transition towards zero-carbon production processes involves specific challenges, which tend to strengthen the case for using standards-based regulations, not least quantitative performance standards. Empirical research suggests that this regulatory approach is not necessarily adopted as crudely as some economic models (and textbooks) suggest. Efforts can be undertaken to reduce the cost of compliance and incentivize technological change. These, in turn, must address the entire set-up of the regulatory systems, including knowledge generation and transfer, social trust, and the forms of relationships between regulators and industry. All in all, it is essential to abstain from simplified normative arguments about instrument choices in environmental policy regardless of the institutional context.
Place, publisher, year, edition, pages
Taylor & Francis, 2025
Keywords
green transition, environmental regulation, institutional context, market-based instruments
National Category
Economics
Research subject
Economics
Identifiers
urn:nbn:se:ltu:diva-112863 (URN)10.1080/00213624.2025.2493534 (DOI)001499360200030 ()2-s2.0-105006903872 (Scopus ID)
Note
Validerad;2025;Nivå 2;2025-06-02 (u2);
Full text: CC BY license;
2025-06-012025-06-012025-10-28Bibliographically approved