more alert to the opportunities and limitations that follow from established policy styles, and being more attentive to basic properties and oddities of the nation’s system of public administration. Institutions already in place, for example, may need to be modified or altered to support the use of economic instruments.
An appropriate institutional framework should be seen as an important precondition for the use of economic instruments. The choice of an agent responsible for the implementation of a system of eco- nomic instruments, and the careful construction of incentives that support policy objectives, can be just as important as the introduction of economic instruments. Unfortunately, economic instruments are often introduced on a marginal basis, that is, they are simply added to existing structures and policies in the hope that everything will work smoothly together. This approach clearly does not produce an appropriate understanding of the incentives at work at the level of implementation.
Since the experience of individual departments in the use of economic instruments is often limited, a specialised task force that could assist in reviewing and assessing the construct of economic incentives could be helpful for many governments.