ABSTRACT
In most cases economic instruments aim to maximise economic efficiency rather than environmental protection. That is, they aim to achieve a given level of environmental protection at least cost to industry, and to enable continued economic growth despite restrictions on pollution. An OECD report (1989: 118) states:
More consensus seems to exist regarding advantages of emissions trading in terms of economic efficiency than with respect to its environmental effectiveness. Substantial cost savings are reported by many authors on this subject. An important advantage of emissions trading over direct regulations is that it has facilitated continuous economic growth in dirty areas.
