Traditional Regulation› Performance Standards› Work Practice Standards

“Market-Based” Instruments.› Quantitative: Environmental Benefit Trading› Price:

Negative: Taxes Positive: Subsidies Negative Funding Positive

› Information

Induced Innovation Hypothesis: Expensive Innovation not Encouraged by Minimizing Short-Term Costs

Compliance Flexibility Facilitates Tweaks, not Basic Technological Change.

Pollution Prevention-RCRA Advanced Technology:

› Feed-in Tariffs› Fleet Averaging (California LEV)› Work Practice (French Nuclear)

Design May be More Important than Instrument. E.g. Carbon Trading.