Market-Based Instrument

{
  "id": "MLC-T-ENV-016598",
  "term": "Market-Based Instrument",
  "field": "Environment",
  "definition": "Market-based approaches to environmental policy include instruments such as taxes, fees, charges and subsidies. These approaches create a price incentive to reduce pollution and leave decisions about the level of emissions to each source. Another example is an allowance trading system, which sets the total quantity of emissions and then allows trading of permits among firms.",
  "references": [
    "Economic Analyses Glossary"
  ],
  "url": "https://mlchart.com/terminology/environment/market-based-instrument/"
}