From an ecological point of view, economic instruments are to be preferred to other instruments of environmental policy … polluter, independently of the size of the individual firm's marginal costs in reducing emissions, economic instruments, like … the emissions to the market process. In the long term, economic instruments provide dynamic incentives to reduce costs …

single policy instrument is considered to be optimal. Instead a policy mix is needed, involving a much wider use of economic … instruments. Copyright Kluwer Academic Publishers 1992 …