Types of Policies for Reducing Pollution

Globally three types of policies are pursued, viz.,

i) Command and control (CAC) measures,

ii) Market-based instruments (MBI), and

iii) Government production or expenditure.

There are several  policy instruments under each of  these  policy options. These instruments can be of two  types: direct and indirect. We present a  taxonomy of policy instruments  for pollution abatement in Table below.

Table: Taxonomy of Policy Instruments  for Reducing Pollution