Not all market-based instruments (MBIs) fit neatly into one type. They may have elements of more than one type, or they may be used in conjunction with another MBI or policy tool (e.g. regulation). For example, a water quality offset scheme (a quantity-based MBI approach) may also make use of conservation tenders (a price-based approach) as a way of finding cost-effective offset actions.
Generally the types of MBIs in use in natural resource management include:
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