The Indonesian government is currently trying to internalise environmental implications of trade liberalization and export growth in the industrial sector by promoting incentive measures for efficient and sustainable use of natural resources for private sector growth. However, the relative lack of data and analysis on real life situations has been hampering the design of policy responses to encourage sustainable use of natural resources. This study therefore identifies and reviews existing environmental policies in the Indonesian pulp and paper industry. It offers a detailed assessment of existing market-based incentives, and proposes an effluent charge to abate pollution in the pulp and paper industry. The aim of this publication is to promote the use of economic instruments for environmental protection, by providing in-depth analysis, a comprehensive assessment, and a best practice for the utilization of economic instruments for others wishing to introduce economic instruments.

The Kenyan government is currently trying to reduce the negative environmental impacts associated with the production and disposal of solid waste, by introducing a policy package to reflect the “real costs” of littering and disposal. This study therefore identifies and reviews existing environmental policies in the waste sector in order to introduce economic incentives to reduce littering and emissions stemming from production, collection, transportation, and disposal of polythene bags. It offers a strategic assessment of existing market-based incentives, and proposes a combination of economic instruments and command and control policies including; banning, national code of practice, plastic bag levy, and consumer awareness and anti-littering campaigns to discourage excessive consumption. Further, it discusses the implications of implementing the selected instruments. The aim of this publication is to (i), promote the production and consumption of cleaner packaging alternatives in Kenya, (ii), formulate a best practice in collection, transport, disposal and re-use of polythene bags, (iii), raise awareness of the problems relating to polythene bags (iv), and support the development of environmentally friendly bags, as well as to assist other policymakers wishing to successfully implement sustainable policy packages in the waste sector.

This study investigates the current and future potential role of economic instruments in the context of three biodiversity-related Multilateral Environmental Agreements: the Convention on Biological Diversity, the Convention on International Trade in Endangered Species of Flora and Fauna, and the Ramsar Convention on Wetlands. The main types of economic instruments relevant to protecting biodiversity and the principal provisions and negotiations on economic instruments in the three MEAs are identified. Using numerous examples, the study suggests a range of thematic areas where the use of economic instruments could be further developed. It also discusses some of the conditions for successful implementation of such instruments.

This publication seeks to help policy-makers and experts to identify, design and evaluate economic instruments and integrate them effectively into pre-existing regulatory structures. It presents an innovative approach by offering a wide range of tools for conducting comprehensive assessments and tailoring solutions to a specific country situation and need. It also provides a framework for conducting policy design, implementation and evaluation through a case study approach, analysing past experiences in an effort to assess, which instruments have worked effectively to address particular types of environmental problems.