Healthy Environment, Healthy Community, Healthy Business

Environment Protection Authority

Market-based instruments and other economic incentives

The EPA uses market-based instruments and other economic incentives to regulate water pollution in the most economically efficient manner by harnessing market forces to meet environmental requirements. Market-based instruments are particularly useful in managing complex water pollution issues, in particular to manage the cumulative impacts of water pollution from multiple sources.

Several of the market-based mechanisms below (Hunter River salinity trading and the South Creek bubble licensing) saw the EPA leading Australia on the use of these approaches to reduce emissions.

More information on market-based instruments and other economic incentives can be found at:

Page last updated: 21 May 2015