Hepburn, Cameron (2006) Regulation by prices, quantities, or both: a review of instrument choice. Oxford Review of Economic Policy, 22 (2). pp. 226-247. ISSN 0266-903X
Full text not available from this repository.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’.
| Item Type: | Article |
|---|---|
| Official URL: | http://oxrep.oxfordjournals.org/ |
| Additional Information: | © 2006 The Author |
| Divisions: | Grantham Research Institute |
| Subjects: | H Social Sciences > HB Economic Theory |
| Date Deposited: | 01 Mar 2011 15:14 |
| Last Modified: | 24 Oct 2025 20:36 |
| URI: | http://eprints.lse.ac.uk/id/eprint/32952 |
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