Introduction to the Bibliography

This annotated bibliography responds to the growing interest in harmonizing government's economic and environmental policies. The burgeoning literature dealt with here is a sign that all of the various instruments of government taxation and fiscal policy are considered as possible tools in meeting government's environmental and sustainable development commitments.

The introductory discussion describes the evolution of the theory and practice of using economic instruments for environmental protection and sustainable development. First the selection criteria for the citations are provided, then the rationale behind the need for some form of environmental protection is analyzed. Following this, the various ways of ensuring environmental protection and sustainable development through policy are reviewed. A shift of discussion in the literature from command and control policy to the use of economic incentives can be observed. The types of economic instruments which can be used and some examples of their practical application from the literature annotated in the bibliography are also discussed. This discussion is meant to be brief and should provide the reader with a basic framework in which to place the references included in the annotation section. Finally, trends which can be observed in changing economic policy from 1989 to the end of 1994 are looked at. This analysis is aided by the construction of a matrix of economic instruments and the sectors within which they are used.

The annotations are arranged in four sections: general discussions of economic instruments for sustainable development; public expenditure instruments; revenue generating instruments; and budget neutral instruments. This ordering reflects how economic instruments fit within a country's budget as well as the effect that they will have on it. The references in the annotated section have been summarized within a matrix according to the effect which they have on a budget and the sector within which they are applied.