Pro-active Policies for Green Growth and the Market Economy

The question of what types of policies nations should use to address the threat of global climate change has become pressing. The OECD Competition Committee contributed to the debate by discussing the implications of different market-based policy alternatives, including taxation, subsidies, and tradable performance standards. The discussion showed not only that effective competition enforcement and advocacy can make such policies more effective, but that the policies themselves also have effects on competition. Consequently, there was broad agreement that competition authorities have an important part to play in the design and implementation of market-based environmental policies.