Topic outline

  • Session 6: Policy Instruments - Decentralized and Command & Control

    Introduction to Decentralized Policies

    Decentralized environmental policies would seem to be a bit of an oxymoron. How do we have active environmental policy without some form of governmental control? Courts and persuasion.

    • Common Law protects us generally from harm caused by other to ourselves and our property,by allowing us to take legal action for compensation
    • Statutory laws (liability laws) specify particular rights with regard to specific products, circumstances, or actions for which we may claim damages.
    • Property rights facilitate our ability to make claims against others for harms we have suffered due to their actions. 
    • Voluntary environmental actions may be profitable for firms either due to reduced resource use, or as a tool of public relations.
    • Community pressure places an emphasis on individuals or firms who are concerned about their public standing or customer base.

    Learning Objectives

    At completion of this session you will be able to:

    • Discuss the effectiveness of the different types of decentralised policy options available to governments to combat environmental damage
    • Specify the appropriateness of liability law in reducing and preventing environmental damage
    • Assess the usefulness of ‘moral suasion’ in limiting  and reducing environmental damage
    • Discuss the usefulness of decentralised policies over other types of strategies in cases of environmental damage to biodiversity, air & water quality, and climate change

    Introduction to Command and Control Policies

    The simplest version of environmental regulation is for the government to dictate to the firms

    • How much they will reduce emissions
    • The standards they must meet
    • What technology they will use to meet the standards

    Learning Objectives

    At completion of this session, you will be able to:

    • Explain the complexity of applying standards as a tool in improving environmental quality
    • Analyze the differences among the three major types of standards
    • Evaluate the issues underlying the application of standards in relation to the levels at which they should be set, whether they should be uniform or not and their incentive effects
    • Discuss the issues in relation to enforcement of standards

◄ Previous section
Session 5: Benefit Cost Analysis and Criteria for Environmental Policy Evaluation
Next section ►
Session 7: Price Based Incentives: Emission Charges and Transferrable Permits