Abstract

Marketplace instruments, such as pollution taxes, emission trading allowances, environmental cost adders in utility planning and resource selection and inchrsion of environmental costs in national systems of accounts, can be useful supplements to environmental command and control regulation. Including environmental externalities in prices can give industry an economic incentive to select more environmentally benign resources and processes and to exceed environmental regulations. Including environmental externalities in national accounts can assist governments to do the same and avoid large pollution cleanup costs. Trading allowances can reduce compliance costs. Valuing environmental externalities and using them wisely to reduce environmental problems and increase economic efficiency is a great challenge.

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Panels of

Panel 2. Commercial Technologies and Buildings

Panel 1. Policy, Programs and Program Evaluation

Panel 4. The Energy-Environment Link

Panel 3. Human Dimensions of Energy-Use and Conservation

Panel 5. Transport