Author(s): Jing Hu
Climate change is a global challenge that requires urgent action, and economic instruments are increasingly seen as critical tools for addressing this issue. Environmental economics provides a framework for understanding how market-based mechanisms, such as carbon pricing, taxes, and tradable permits, can incentivize sustainable behavior and reduce greenhouse gas emissions. This article explores the role of economic instruments in combating climate change, focusing on how these tools promote sustainable development. Case studies from various regions demonstrate their effectiveness and limitations. The article also discusses the challenges of implementing these instruments and offers insights into potential future strategies for integrating environmental goals with economic growth.