Ambitious environmental policies are necessary to enable the transition to a greener economy. However, these policies could impose economic burdens on firms through different channels. They may increase barriers to entry and distort competition. They may also impose transaction and administrative costs related to permitting and licensing. If stringent environmental policies can be designed in a way that minimises such economic burdens, they can facilitate the achievement of economic and environmental goals and a cleaner growth model.
Assessing the efficiency of environmental policy design and evaluation: Results from a 2018 cross-country survey
Working paper
OECD Economics Department Working Papers
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