In environmental economics it is considered that policy-makers have two broad types of instruments available for changing consumption and production habits in society:
1) Traditional regulatory approaches (sometimes referred to as command-and-control approaches) that set specific standards across polluters.
2) Economic incentives or market-based policies that rely on market forces to correct for producer and consumer behavior (such as pollution/ emissions taxes, subsidies, Payments for Environmental Servicesare the services that humans render to each other to maintain or increase certain ecosystem services (Karsenty, 2013). Environmental services are a sub-group of ecosystem services that are characterised by externalities (FAO, 2007... More (PES), agri-environment-climate measures (AECM)are a funding mechanism aiming to provide financial support to farmers to contribute to the protection or enhancement of biodiversity, soil, water, landscape, or air quality, or climate change mitigation or adaptation. A bundle of... More.
