Keohane, N. O. & Olmstead, S. M. (2016). Chapter 8: Principles of Market-Based Environmental Policy In Markets and the Environment (pp. 139-169). Washington, D.C.: Island Press. Based primarily on the Keohane and Olmstead (2016) reading, answer the following prompts:  (2) In layperson’s terms, what are market-based policy instruments? What distinguishes a market-based instrument from other instruments? Suggested answer length: 2-4 sentences. (3) What are the potential advantages of market-based instruments, relative to prescriptive regulation? Suggested answer length: 2-4 sentences. (4) Why do Keohane and Olmstead refer to some instruments as “quantity instruments” and others as “price instruments”? What does this distinction mean? Suggested answer length: 3-6 sentences.

Keohane, N. O. & Olmstead, S. M. (2016). Chapter 8: Principles of Market-Based Environmental Policy In Markets and the Environment (pp. 139-169). Washington, D.C.: Island Press. Based primarily on the Keohane and Olmstead (2016) reading, answer the following prompts: 

(2) In layperson’s terms, what are market-based policy instruments? What distinguishes a market-based instrument from other instruments? Suggested answer length: 2-4 sentences.

(3) What are the potential advantages of market-based instruments, relative to prescriptive regulation? Suggested answer length: 2-4 sentences.

(4) Why do Keohane and Olmstead refer to some instruments as “quantity instruments” and others as “price instruments”? What does this distinction mean? Suggested answer length: 3-6 sentences.