Abstract:

Emission standards referred as the “command and control” in literature is a legal limit on the amount of pollution of an individual source. Taxes, which are collected by the local or national authorities, are a fee levied on each unit of pollutant emitted into the air and water. Administrators in most cases prefer taxes to standards because of the difficulty to calculate of the relevant marginal costs and marginal benefits, not excluding external costs as well as the estimation of the monetary costs of the environmental damage. The pro and costs of standards and taxes are always discussed by the economists and policy makers. This paper thus aims to give the basic theoretical background of those policy instruments and analyse of practical implementations, which are based on fully literature review. 

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