Environmental policy tools and evaluation


  • Israel's Green Tax on Cars

    In recent decades, Israel’s growing population and rising incomes have seen consumption increase substantially, bringing with it considerable pressure on the environment. One of the main environmental pressures is from the ever-increasing transport activity, especially the use of private vehicles.

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  • Monetary Carbon Values in Policy Appraisal

    Cost-benefit analyses and other quantitative appraisals are used in many countries to support decision-making in areas of public policy, including investment projects in sectors such as transport and energy. This paper discusses the range of approaches which can be employed to value changes in carbon emissions in policy appraisals, setting out the key issues in the choice of valuation principles, and presents some case studies and a survey of current practice in OECD countries.

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  • Cost of air pollution: Health impacts

    This report estimates the economic cost of the health impacts of air pollution from road transport – on a global scale, but with special reference to People’s Republic of China, India and the OECD member countries.

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Ongoing empirical work sheds light on the economic effects of environmental policies.

Environmental taxation Trading systems Carbon pricing
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Provides major environmental benefits and raises significant tax revenue.


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Cost-effective policy tools, with a predefined environmental outcome.

Trading systems

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Costs to society per unit of carbon abatement that different policy instruments cause.


 Mortality impacts Morbidity impacts
Cost-benefit analysis
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For many environmental policies, changes in human mortality will be the impact with the largest economic value.

Mortality impacts

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Changes in human illnesses can be an important outcome of many environmental policies.

Morbidity impacts

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Comparing costs and benefits, including environmental impacts, is important for all aspects of policy making.


Policy reform Behavioural and experimental economics  
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Implementing major environmental
policy reforms requires overcoming
many different potential obstacles.


Policy reform

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Insights from behavioural economics can contribute
to the design of more effective environmental policies.