Policy Design

Conventional markets exclude or only partially reflect the economic value of environmental and cultural resources. This means that the price of these goods and services and the cost of environmental pollution are lower than they should be leading to excessive resource use and pollution.

Government intervention is required to correct this price structure and capture at least some of the economic value of resources in the form of user charges, product or pollution taxes and tradable permits . We have worked on designing new policy instruments by the public sector as well as assisting private sector in complying with new policies in areas as varied as:

  • landfill tax in the UK
  • a potential pesticide tax in the UK which was later replaced by a voluntary agreement between the Government and the agrochemical industry which we also helped design
  • environmental liability
  • water supply and wastewater management
  • incentives for recycling
  • transferable development right and transferable flood permits in the context of flood risk management
  • using economic instruments to encourage increased resource use productivity
  • a potential tradable permit system for nutrient use in agriculture

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    We also focus on the design and use of instruments to measure performance such as:

  • indicators of sustainable development
  • the prioritisation of environmental problems or policies

    • We have informed policy decisions for both private sector and public sector clients, which have contributed to local, national and international decision-making.

    For specific examples of our work in this area please visit our projects page.

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