How Market Instruments and the Economy Can Contribute to the Protection of the Environment

It is common to correlate development with environmental degradation, economic as a general cause and effect relationship, however the issue is a little more complex, this article intends to address more comprehensively a relationship between economic development and environmental protection, this will be the central object of the article. To deal with this intricate relationship, environmental policy should not be understood only as a restriction tool, the environmental regulatory function is not limited to the control/sanction binomial, in its implementation it must be included as determining factors for innovation and economic growth must be included as determining factors. Economics and, more particularly, the promotion of market­ based instruments can therefore contribute to the construction of a more developed environmental law and policy. It is these market-based instruments that will be the central focus of this contribution, focusing on the interdependencies between economy and environmental quality, thus showing that the economy is not necessarily a threat to environmental protection, on the contrary, it could contribute to greater protection of the environment. Thus, the present work is presented in three parts. Initially, a literature review will be undertaken that empirically analyzed the relationship between economic growth and environmental quality, known as the Environmental Kuznets Curve. Subsequently, it seeks to demonstrate how some market instruments can play a central role in an efficient environmental policy. In the following topic, an approach will be made to these instruments and their applicability in different realities, such as developing countries, integrating their specificities and conditions. In the "Concluding remarks", a closing is carried out debating the main conclusions.