Table AI.

Proposed policy instruments for controlling climate change

Standards, rules and regulationsThere should be technological standards to determine the level of reduction in pollution
There should be performance standards to specify the minimum level requirements to reduce carbon emissions and pollution
Taxes and tariffThere should be a levy imposed to prevent undesirable activities leading to climate change
Cap-and-tradeThere should be a system to monitor marketable permits or cap-and-trade systems to limit aggregate emissions. In this way, it is required from each source to hold permits equal to its actual emissions and allow permits to be traded among sources
Voluntary rewards and penaltiesThere could be an agreement between authorities and one or more parties to achieve green objectives or to improve environmental performance beyond regulatory obligations. To improve the performance, there should be some rewards and/or penalties associated with joining or achieving environmental commitments
Aids and incentivesThere may be some tax deductions, supports or aids from a government to an entity for implementing an environmental best practice or performing an action
Public disclosureThere should be public disclosure of environmentally related information. This could be generally from industry to consumers. For instance, labeling programs and rating and certification, etc.
Research and developmentThere should be an investment in R&D to generate innovation on mitigation to reduce emissions
Non-climate policiesOther policies not specifically directed at emissions reduction but that may have significant climate-related effects
Source: Akpan and Akpan (2012) 

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