Transaction costs and the assessment of greenhouse policies in the transport energy sector

Abstract

This study, which is at data-collection stage, employs a comparative analysis of alternative policy instruments to identify institutional structures that lower transaction costs. Policy institutions are supposed to be designed to help reduce transaction costs through information generation, in the form of signals and incentives, to help markets to function efficiently and policies to be implemented successfully. However, the relative effectiveness of market-based policies and/or command-and-control policies is often assessed without consideration of the impact of transaction costs. Policy analysis incorporating transaction costs is a shift from current practice, including analysis of greenhouse policies in the transport energy sector. Show more