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Creating Incentives for Greener Products

A Policy Manual for Eastern Partnership Countries

image of Creating Incentives for Greener Products

The European Union’s Eastern Partnership (EaP) countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine) struggle with environmental challenges related to the consumption and end-of-life management of many harmful products. This policy manual considers the potential use and implementation of four categories of product-related economic instruments to address some of these challenges: product taxes, tax differentiation based on environmental factors, deposit-refund systems and extended producer responsibility (EPR).

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Strategic approach to using product-related economic instruments

This policy manual considers the potential use and implementation of four categories of product-related economic instruments: product taxes, tax differentiation based on environmental factors, deposit-refund systems and extended producer responsibility (EPR). Each of these instruments has particular strengths and weaknesses that make them appropriate with respect to certain policies and products, but may reduce their applicability elsewhere. This section proposes an approach to identify instruments which are appropriate for the particular environmental problem under consideration.

English

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