Economic instruments operate alongside command-and-control to align environmental goals


greenIn policy mechanism, command-and-control approaches remain the most dominant throughout the world despite the benefits of economic instruments

Policy instruments are like the two-headed Roman God, Janus. They fall into two general categories: market-basedeconomic instruments and command and control. In simple words, they play at two levels: Carrots: new markets; Sticks: regulatory burden.  However, economic instruments and command-and-control approaches often operate alongside each other.

Policy instruments can be used to influence business drivers to align environmental goals. In this respect, Clean Air Actthat came about in the US in 1970 was a turning year. Since then, a number of regulations have been implemented in an exploding manner. In regulatory terms, the European Authorities have emerged as important drivers of change with various Directives addressing VOC and solvents reductions. Another legislation is CAFE, launched in 2001, reducing further VOC.

 

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SOURCE: http://www.business-standard.com/

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Categorised in: Articles, Energy

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