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Notes 10 CommandandControl

This document summarizes different types of command and control regulations: bans, non-tradable quotas, technology/procedural standards, and performance-based standards. It provides examples of each type and discusses some of their advantages and disadvantages. Bans prohibit certain activities but can have unintended consequences. Quotas assign limits but do not provide flexibility. Technology standards specify solutions without innovation. Performance standards set goals but allow flexibility in compliance. The document considers different policy options and tools.

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Lik jjj
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29 views36 pages

Notes 10 CommandandControl

This document summarizes different types of command and control regulations: bans, non-tradable quotas, technology/procedural standards, and performance-based standards. It provides examples of each type and discusses some of their advantages and disadvantages. Bans prohibit certain activities but can have unintended consequences. Quotas assign limits but do not provide flexibility. Technology standards specify solutions without innovation. Performance standards set goals but allow flexibility in compliance. The document considers different policy options and tools.

Uploaded by

Lik jjj
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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To appear armed in any enclosed forest

or place, where deer are usually kept, or


in any warren or hares or conies, or in
any high road, open heath, common, or
down, by day or night, with faces
blacked, or otherwise disguised, or
(being so disguised) to hunt, wound,
kill, or steal any deer, to rob a warren or
to steal fish, or to procure, by gift or
promise of reward, any person to join
them in such unlawful act, is felony
without benefit of clergy
Henry VII
~1500
Unit 10:
Command and
Control
Regulations
What we cover in Unit 10

Bans Non-Tradable Quotas Technology and/or Performance Based


Procedural Standards Standards

Regulations Vs Wrap up and


Economic Tools Summary
Bans
Bans
It’s a Ban, in other
words, whatever activity
is being identified is
prohibited (not allowed).

If you break the ban,


there will be some form
of formal punishment.
Examples
Upcoming
Federal
Ban &
Recent
City Ban
The Problem with
Plastic
Case Study: Chicago Plastic Bag Ban
Anticipated Outcome
Actual Outcome
Paper Bag Alternatives?
Cotton Reusable?
Chicago Change in Strategy

Result: Significant increase in use of re-usable bags and bagless shopping.


Edmonton’s 2022
Single Use Bylaw and
Regulations
Alberta’s Power Plant Coal Use Ban
Bans work best when highly preferable
alternative solutions are easy to adopt. Some
examples:
- Ban on littering coupled with availability of
trash cans
- Ban on incandescent light bulbs when slightly
Some higher cost but equally effective alternative
Consideration exists
on Bans Bans can have unintended consequences so
adaptive management is important
Sometimes due to the negative consequences of
an issue, bans may be the preferable alternative
even if market demand will not be satisfied with
substitutes (Ivory ban, ban on shark fin soup,
etc). In such cases strong enforcement will be
needed.
Non-Tradable
Quotas
Non-Tradable Quota’s
• a prescribed number or share of something

• Hunting Licenses
• Montreal Protocol allowed 0.3 kgs per capita of CFC
emissions for Developing Countries
• Many examples in Fishing Industry

“A right to Pollute/Consume …….. to a certain level”


Technology
and/or
Procedural
Standards
Technology Standards

• Dictates a particular technology or procedure


that must be followed when doing something
• All cars must have Catalytic Converters
• All coal plants must have NO2 Scrubber Model #
XS238309A.
• No Flexibility or encouragement to innovate – just follow the rule as written.
Procedural Standards
• Dictates a particular procedure that must be
followed when doing something
• All new Buildings must Undertake an Environmental
Impact Assessment
• All farms must have a nutrient management plan
• All tailings must be tested for levels of specific toxins
prior to discarding.
• Don’t cross until the little walking guy appears
Performance
Based
Standards
Performance Based Standards
• Dictates a performance standard for certain
activities/products
• EU limits car emissions to 5 g/kWh of NOx and 0.10 g/kWh of
Particulate Matter
• Water wells must provide safe water and prevent aquifer mixing
• Cross the street when it is safe to do so

• Allows those affected to use innovation and


flexibility to meet the goals
1975 Environmental Problem

• NOx and CO being released


• Known solution is to install catalytic
converter onto cars.
• Policy Options:
Option 1: Technical Standard – All cars must
have Catalytic Converter
Option 2: Performance Based Standard that
states “Must emit less than X pollutants per
km traveled”
1975 Civic
Insert commercial
Regulations
Vs Economic
Tools
Command and Control (Regulation)

“Command-and-control is comforting to politicians


and people: governments know what they are
asking for, people know what they are getting,
companies know what they are supposed to deliver;
the only people who do not like it are economists.”

The Economist, September 2, 1989


Why: Efficiency of Pricing vs Other Approaches

https://on360.ca/policy-papers/evidence-
based-climate-policy-for-ontario/
Important Consideration
US Inflation Reduction Act (2022)
US Inflation Reduction Act (2022)
My Evolving Position?
Key Points/Summary: Unit 8
• Command and Control was the favored form of policy
instrument prior to the 1990’s
• Very clear outline of expected impact (assuming
compliance) and in some cases can be very effective policy
• Can be cumbersome for government due to cost of
regulating, monitoring, and enforcing
• Tends to have limited flexibility and limited responsiveness
(to new situations, new technologies, etc.) and as such,
consideration should be given to more flexible solutions.
• At times, subsidies and command and control can be more
politically feasible than better instruments

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