Economic instruments  are environmentally effective and economically efficient policy instruments. OECD has long advocated for a consistent use of these instruments and has carried out extensive analysis of their implementation, and use in policy mixes. In addition to this analytical work, databases are being developed to monitor their use in Member countries.

Work is being undertaken on how national governments and other public authorities can generate both direct and indirect environmental benefits through greener public purchasing programmes  and initiatives. In addition to analysis of the efficiency and effectiveness of the GPP initiatives, particular attention has been paid to links with public expenditure management, national and international procurement law and the general environmental policy framework. A book has recently been published on these issues.

Voluntary approaches, in particular negotiated agreements and voluntary public programmes , are increasingly used by OECD Member countries as environmental policy measures. In addition, unilateral commitments by firms to improve their environmental performance are becoming more common. OECD collects and analyses information on the use, effectiveness and efficiency of these instruments.

The extension of producer responsibility to the post-consumer phase of a product gives governments a new policy option to address the growing problems of waste. OECD's work on extended producer responsibility aims to provide governments with information on what is needed to establish effective policies and programmes.