%0 Journal Article %1 Hepburn2006 %A Hepburn, Cameron %D 2006 %J Oxford Review of Economic Policy %K climate economics transport prj-sustainability %N 2 %P 226-247 %R 10.1093/oxrep/grj014 %T Regulation by Prices, Quantities, or Both: A Review of Instrument Choice %U http://www.economics.ox.ac.uk/members/cameron.hepburn/Hepburn%20(2006,%20Oxrep)%20Regulation%20by%20P%20or%20Q.pdf %V 22 %X 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'.

@article{Hepburn2006, abstract = {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'.}, added-at = {2010-08-10T21:32:30.000+0200}, author = {Hepburn, Cameron}, biburl = {https://www.bibsonomy.org/bibtex/26827132c7b44dbcd36b29804257a9e5d/nicoj}, doi = {10.1093/oxrep/grj014}, interhash = {25352b827b56c6d0f4a486fee7dc05d3}, intrahash = {6827132c7b44dbcd36b29804257a9e5d}, journal = {Oxford Review of Economic Policy}, keywords = {climate economics transport prj-sustainability}, number = 2, pages = {226-247}, timestamp = {2012-08-06T22:08:36.000+0200}, title = {{Regulation by Prices, Quantities, or Both: A Review of Instrument Choice}}, url = {http://www.economics.ox.ac.uk/members/cameron.hepburn/Hepburn%20(2006,%20Oxrep)%20Regulation%20by%20P%20or%20Q.pdf}, volume = 22, year = 2006 }