When policy makers refer to economic instruments in an environmental context, they mean policy tools that tap market forces to influence the environmental behavior of consumers and producers. The concept is familiar terrain to John Dixon, lead environmental economist in the World Bank’s Environment Department.

The World Bank categorizes environmentally targeted economic instruments as “using markets” or “creating markets.” The former category includes subsidy reductions, eco-taxes, user fees, deposit-refund systems and targeted subsidies, while the latter covers privatizations, tradable permits, international offsets and creating property rights.

For years, Dixon has helped develop such instruments for use in Latin America. He also has written on the subject, authoring or co-authoring works including the World Bank’s “Five Years After Rio: Innovations in Environmental Policy.”

Dixon spoke in his Washington office recently with EcoAméricas contributor Keith Edward Ripley. [Log in to read more]

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