ABSTRACT
This chapter shows that how some of diverse range of approaches can be used to tackle specific environmental problems. It discusses more generally the task of reversing unsustainable development. The chapter discusses further the various policy approaches required in creating a more virtuous cycle towards sustainable economic development. It focuses on four critical areas: property rights, market-based instruments and economic reforms, creating global markets and government efficiency. The chapter deals with an overview of the various economic, regulatory and institutional policy approaches available for environmentally sustainable development. The types of macroeconomic policy that appear enhance their effectiveness and the attainment of environmental objectives generally are the removal of subsidies and other market distortions, thus allowing private costs to be more closely aligned with social costs. Market-based instruments are a powerful, flexible and cost-effective policy tool for positively reinforcing economy–environment linkages that can guide an economy towards sustainable development.
