MARKET-BASED APPROACH IN RESPONSE TO CLIMATE CHANGE AND LESSONS LEARNT FOR VIET NAM

Abstract

Abstract: In the field of natural resource management, environmental protection and response to climate change, market-based approaches are considered alternatives to reduce the burden of state intervention, mobilizing other resources, while helping to improve efficiency. The promotion of market- based approaches is also a common trend in the world. There are two types of policy instruments for natural resource management and pollution control: Market-Based Approach (MBA) and Command and Control Approach (CCA). Policymakers can use CCA to establish specific standards for polluters or resource users, or use MBAs, which rely on market forces to encourage changes in behavior of producers and consumers, while delivering environmental improvements. The article will focus on analyzing the MBA, including các-bon trading and các-bon tax mechanisms, and at the same time giving lessons from international experiences on implementing trading mechanisms, and các-bon tax, thereby drawing lessons for Viet Nam.