ABSTRACT
Having established that a certain environmental threat is real, it becomes the task of policy-makers (politicians and their civil servants) to devise policies to address the threat. They have a range of policies at their disposal. We can broadly divide these into two types: regulatory measures (examples include outright bans, the introduction of quotas, rules about labelling), where government uses its political power to impose limits and requirements on economic actors; and incentive-based measures – including taxation or the introduction of permits. In this chapter, we consider the advantages and disadvantages of some of these policies in a theoretical perspective.
