Market-Based Instruments in Environmental Policy: Lessons and Principles
| dc.contributor.author | Holcomb, Benjamin | |
| dc.contributor.chair | Morreale, Stephen | en_US |
| dc.date.accessioned | 2025-10-03T13:32:22Z | |
| dc.date.available | 2025-10-03T13:32:22Z | |
| dc.date.issued | 2025-08 | |
| dc.description.abstract | This paper explores the role of market-based instruments (MBIs) in environmental policy, examining them within both the historical context of economic theory and their contemporary use around the globe. By tracing the roots of MBIs in both Pigouvian and Coasean theory, this paper shows how MBIs evolved as a product of neo-liberal environmental governance and appeared as flexible, incentive-based governance alternatives to traditional, coercive command-and-control regulation. The paper shows how MBIs (through selected case studies of carbon markets, debt-for-nature swaps, and green/blue bonds, and payments for ecosystem services) have the power to generate massive new private capital flows to environmental impact, diminishing greenhouse gas production, and incentivizing conservation. However, analysis also reveals continuous weaknesses and vulnerabilities of MBIs: non-additionality, price volatility, burden and sovereignty risks which fall disproportionately on marginalized communities, and commodification risk of irreplaceable ecosystems. Important design and implementation challenges remain. Based on this analysis, the paper identified five principles that will help make MBIs effective and judicious: integrity of outcomes, justice and equity, sovereignty and consent, acknowledgment of non-fungibility, and cultural fit. In summary, the study argues that MBIs are extremely effective in aligning finance with environmental objectives, however, for them to be long-lasting and ethically sound, they must prioritize social justice, moral accountability, and cultural engagement in their design. | en_US |
| dc.identifier.uri | https://hdl.handle.net/1813/117783 | |
| dc.language.iso | en_US | |
| dc.title | Market-Based Instruments in Environmental Policy: Lessons and Principles | en_US |
| dc.type | dissertation or thesis | en_US |
| thesis.degree.level | Master of Professional Studies |
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