Question

What is the need of economic instruments for environmental economics.

Answer 1

$\bold{Answer}$

Economic Instruments encompass a range of policy tools, from pollution taxes andmarketable permits to deposit-refund systems and performance bonds. The common element of all economic instruments is that they effect change or influence behaviour through their impact on market signals.

Answer 2

Answer:

Economic instruments can be used to provide the kinds of signals concerning resource scarcity and environmental damage that induce efficient resource use and minimization of waste, which are needed to make sustainable development possible.