Regulation by Prices, Quantities, or Both: A Review of Instrument Choice.
Choosing appropriate policy instruments is an important part of successful regulation. Once objectives are agreed and suitable targets adopted, policy-makers can employ command-and-control regulation and/or economic instruments, and choose between fixing a price or a quantity. This paper examines th...
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| Materialtyp: | Journal article |
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2006
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| _version_ | 1826295352392679424 |
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| author | Hepburn, C |
| author_facet | Hepburn, C |
| author_sort | Hepburn, C |
| collection | OXFORD |
| description | Choosing appropriate policy instruments is an important part of successful regulation. Once objectives are agreed and suitable targets adopted, policy-makers can employ command-and-control regulation and/or economic instruments, and choose between fixing a price or a quantity. This paper examines the relative advantages of price, quantity, and hybrid instruments according to: their efficiency under uncertainty; the trade-off between credible commitment and flexibility; implementation; international considerations; and political economy. Various illustrations of the theory are provided, with two detailed applications to climate change and transport policy, specifically congestion and 'safety pricing'. |
| first_indexed | 2024-03-07T03:59:43Z |
| format | Journal article |
| id | oxford-uuid:c420462c-a15e-4927-a513-848c94763fff |
| institution | University of Oxford |
| last_indexed | 2024-03-07T03:59:43Z |
| publishDate | 2006 |
| record_format | dspace |
| spelling | oxford-uuid:c420462c-a15e-4927-a513-848c94763fff2022-03-27T06:21:17ZRegulation by Prices, Quantities, or Both: A Review of Instrument Choice.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:c420462c-a15e-4927-a513-848c94763fffDepartment of Economics - ePrints2006Hepburn, CChoosing appropriate policy instruments is an important part of successful regulation. Once objectives are agreed and suitable targets adopted, policy-makers can employ command-and-control regulation and/or economic instruments, and choose between fixing a price or a quantity. This paper examines the relative advantages of price, quantity, and hybrid instruments according to: their efficiency under uncertainty; the trade-off between credible commitment and flexibility; implementation; international considerations; and political economy. Various illustrations of the theory are provided, with two detailed applications to climate change and transport policy, specifically congestion and 'safety pricing'. |
| spellingShingle | Hepburn, C Regulation by Prices, Quantities, or Both: A Review of Instrument Choice. |
| title | Regulation by Prices, Quantities, or Both: A Review of Instrument Choice. |
| title_full | Regulation by Prices, Quantities, or Both: A Review of Instrument Choice. |
| title_fullStr | Regulation by Prices, Quantities, or Both: A Review of Instrument Choice. |
| title_full_unstemmed | Regulation by Prices, Quantities, or Both: A Review of Instrument Choice. |
| title_short | Regulation by Prices, Quantities, or Both: A Review of Instrument Choice. |
| title_sort | regulation by prices quantities or both a review of instrument choice |
| work_keys_str_mv | AT hepburnc regulationbypricesquantitiesorbothareviewofinstrumentchoice |