Economic instruments can be a very effective way of inducing compliance, raising funds for enforcement activities and environmental protection and cutting compliance and enforcement costs.
Economic incentives are basically approaches to environmental management that use market forces, e.g. fees, tradable permits, tax incentives, subsidies, pollution taxes etc. to achieve desired behaviour changes in the regulated community. Guideline 41(g)
and the accompanying discussion, expand upon the scope, diversity, and application of economic instruments.