Although economists have usually defended the superiority of market-based instruments, and an increasing use of those measures in OECD countries has taken place, there has been (and still is) some reluctance by policy makers to use them for climate policy. The aim of this paper is to provide a...

Many economists propose the superiority of market-based instruments, and an increasing use of such measures in OECD countries has taken place. However, there has been (and still is) some reluctance by policymakers to use market-based instruments in climate policy. This article provides a...