One of the challenges facing policy makers today is how to motivate individuals andorganizations to implement new technologies that are needed to solve existing andemerging environmental and sustainability concerns. Which regulatory or market basedstrategies will achieve the result and which strategies will be ineffective or even harmful?Ultimately the goal is to achieve the greatest benefit to society at the lowest possible costwhile avoiding unreasonable harm to any given stakeholder.This paper examines several factors including certain types of market failures that disruptthe application of conventional economic theories; how those factors impact onenvironmental sustainability programs and regulatory strategies for bringing economicmotivations back into effective application. Specific factors considered include: 1)notional biases; 2) institutional momentum; 3) information asymmetry; 4) changingeconomic conditions; 5) split-economic incentives; and 6) externalities.
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