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electricity sector, the transportation sector, and energy efficiency policies. recent work builds on a long-standing tradition of comparing command-and-control mandates, cap-and-trade permits, and pollution taxes to control emissions. for example, although standard models suggest that market-based instruments
are cost-minimizing, lawrence goulder, marc hafstead, and roberton williams iii describe circumstances when standards might yield greater efficiency. actual policy has mostly shied away from market-based instruments such as permits or taxes, which raise the cost of production, and instead favors energy...
https://www.nber.org/programs/eee/eee.html
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