Economic Instruments for Promoting Sustainable Natural Resource Use, Environmental sustainability and Responses to Climate Change

This report was prepared to inform the formulation of the five-year National Development Plan (NDP), whose theme is ‘Growth, Employment and Prosperity’. It is based on a study that draws lessons learned from over a decade of using economic instruments (EIs) for environmental management for pro-poor growth. The study recommends improvements that the Government of Uganda could make in applying economic instruments. The Poverty–Environment Initiative of the United Nations Development Programme (UNDP) and the United Nations Environment Programme (UNEP) funded the study and the preparation of this report. The findings of the study, drawing on a review of six case studies from the energy, transport, water and sanitation, finance and banking sectors are revealing. EIs complement other instruments such as command and control (CAC) and regulation.