[PDF] Environmental policy performance bonds - Anciens Et Réunions

What is a policy performance bond?

A policy performance bond thus provides a hedge against the issuing country’s government, or a corporate organisation, not delivering on its commitments or targets. Policy performance bonds can be issued against carbon emissions reduction targets but also forest preservation targets and any other area where policy risk is significant.

What are some examples of policy-performance bonds?

GDP-linked indexed loans, which have been raised as a possible way to ameliorate Greek economic problems, are another example of policy-performance bonds. Such bonds in water or forestry might help with other environmental targets. Now imagine COP22. With CO2 government bonds we would have clear bond prices set by markets.

Are assurance bonds a tool for managing environmental costs in aquaculture?

Assurance bonds: a tool for managing environmental costs in aquaculture. Aquaculture Economics & Management. 2002;6 (1–2):1–17. Parry IW, Bento AM. Tax deductions, environmental policy, and the “double dividend” hypothesis. J Environ Econ Manag. 2000;39 (1):67–96.

Are performance bonding schemes effective?

Successful design of performance bonding schemes faces multiple and in many cases unique challenges, suggesting much scope for further study. These include the effects of private (and asymmetric) information on setting the correct initial bond payment, and risks of bond failures that undermine the effectiveness of these schemes.