Skip to main content
. 2020 Aug 24;135:110199. doi: 10.1016/j.rser.2020.110199

Table 2.

Categories of market-based instruments.

Category Description Instrument examples Ref.
Market friction-based Market friction-based instruments help in achieving policy targets by improving the conditions of existing private markets. These MBIs are non-financial in nature
  • -

    Eco-labelling

  • -

    LEED Standards

  • -

    Energy Star ratings of appliances

 [49,[51], [52], [53], [54]]
Rights-based Rights-based or quantity-based instruments specify the amount of emission permitted under a specified condition
  • -

    Cap-and-trade scheme for provinces (emissions, quotas, or permits)

  • -

    Carbon offset scheme

  • -

    Lead trading
Price-based Price-based instruments provide changes in prices in existing market conditions
  • -

    Subsidies on high efficiency appliances

  • -

    Carbon tax on fossil fuel used