TOPIC The Command and Control Approach Prepared by Anindita Chakravarty Introduction Command and Control CAC Regulation can be defined as the direct regulation of an industry or activity by ID: 1020927
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1. UNIT 3SOLUTIONS TO ENVIRONMENTAL PROBLEMSTOPIC: The Command and Control ApproachPrepared by Anindita Chakravarty
2. IntroductionCommand and Control (CAC) Regulation can be defined as “the direct regulation of an industry or activity by legislation that states what is permitted and what is illegal.The ‘command’ is the presentation of quality standards/targets by a government authority that must be complied with.The ‘control’ part signifies the negative sanctions that may result from non-compliance e.g. prosecution.CAC encompasses a variety of methods i.e., influencing behaviour through: laws, incentives, threats, contracts agreements (eg Kyoto Protocol)
3. Strengths and weaknesses of approachWEAKNESS:They limit the firm’s ability to find the most cost-effective way to continue production while reducing pollution.Often times it is hard or impossible for the government to know the cost structures of each of the polluting firms. This knowledge is required if the regulation is to be efficient. STRENGTH: It is believed by many that the primary advantage of using command-and-control mechanisms is that they provide a clear outcome, while being comparatively simple to monitor compliance. Therefore, it is possible that an emissions reduction goal can be reached; if not, the violators will pay a fine.
4. The Market Approach
5. Introduction“Market-based instruments are regulations that encourage behavior through market signals rather than through explicit directives regarding pollution control levels or methods” In terms of the market-based instruments, which provide great flexibility and financial incentives, they can spur producers to adopt the new technologies and facilities to pursue better results in order to solve the environmental problems. People will accept a policy more easily if either the benefits increase or the cost decreases. One may pour their wastes to a close-by river if they do not need to pay for thatEg: Emission Tax, Tradable Permits, Liability Laws etc.We will discuss them in detail in the up-coming classes
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