collocation · academic
market-based incentives
UK/ˈmɑːkɪt beɪst ɪnˈsɛntɪvz/US/ˈmɑːrkɪt beɪst ɪnˈsɛntɪvz/MAR·ket-BASED in·SEN·tives
Economic instruments that use market signals (taxes, subsidies, trading schemes) to encourage environmental improvements.
Examples
“Policymakers prefer market-based incentives because they can change behaviour at lower cost.”
“A carbon tax and tradable permits are classic examples of market-based incentives.”
“Designing effective market-based incentives requires careful assessment of side effects.”
Band 8 sentence
“Market-based incentives such as tradable permits and targeted subsidies can change firm behaviour more cost-effectively than blanket bans.”
Collocations
- implement market-based incentives
- design market-based incentives
- use market-based incentives
Word family
Common mistakes
incentives by the market→market-based incentives
market based incentive→market-based incentives
Say it for a higher band
5financial incentives→6economic incentives→7+market-based incentives
Synonyms
economic incentives
market instruments
Easily confused
economic incentives
“Governments often rely on economic incentives to stimulate investment in new industries.”
command-and-control regulations
“Rather than market-based incentives, the government introduced strict emission limits.”
Related words
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In Environment & Climate
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