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Although a market-oriented approach has the potential to improve upon traditional command and control regulations, questions remain about how these rights-based institutions can be implemented such that the potential gains from liberalized trade can be realized.
Regulatory instruments are available to create and maintain more sustainable societies: command and control regulations, restraints, Pigovian taxes, emission certificates, nudging policies, and more.
The EPA, citing the Congressional refusal to enact flawed cap-and-trade policies, is now attempting to impose command and control regulations on the power and energy industry.
Some bureaucrats will want higher taxes to extend their revenue while others will think it weakens their control if taxes replace command and control regulations.
The top-down, "command and control" regulations of the first generation of environment activism could not cope effectively with these new problems.
Though cap and trade or a carbon tax would make reducing greenhouse gasses more cost effective, I don't think we'll see any of these creative approaches to climate policy until the command and control regulations are in place.
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A series of command-and-control regulations.
"I don't know of any other major industrial country that resorts to command-and-control regulations, rather than the price incentive, to conserve oil," Dr. Nivola said.
Later, he reasoned that, if polluters were faced with a choice between command-and-control regulations and cap-and-trade, they would "come begging for cap-and-trade".
The world may yet leapfrog from the dark ages of clumsy, costly, command-and-control regulations to an enlightened age of informed, innovative, incentive-based greenery.
Much of the credit for the largely blue skies in America today goes to command-and-control regulations, and America's carbon policy consists of similar mandates, notably fuel-efficiency standards for cars and now, proposed standards for new power plants.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com