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The Principle of Targeting in Energy and Environmental Policy

May 20, 2015

Argues that the Principle of Targeting is usually ignored when shaping energy and environmental policy. The Principle of Targeting should be used as a standard rule for policy making.

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Argues that the Principle of Targeting is usually ignored when shaping energy and environmental policy. The Principle of Targeting should be used as a standard rule for policy making. The core idea is that if a new regulation of some sort is required, either in the form of a restriction on an economic quantity or price, the most efficient intervention targets the specific variable of direct interest, rather than trying to manipulate it through indirect regulations on surrogate quantities or activities where the regulators have no actual, legitimate interests.

Article Tags
Energy Environment