Environmental policy
Environmental policy instruments are tools used by governments and other organizations to implement their environmental policies. Governments, for example, may use a number of different types of instruments. For example, economic incentives and market-based instruments such as taxes and tax exemptions, tradable permits, and fees can be very effective to encourage compliance with environmental policy. The assumption is that corporations and other organizations who engage in efficient environmental management and are transparent about their environmental data and reporting presumably benefit from improved business and organizational performance.