For example, it has been estimated that the marginal capital cost of removing a kilogram of biological oxygen demand (BOD)—a standard measure of water pollution—varies from one penny for one … Command-and-control regulation has been highly successful in protecting and cleaning up the U.S. environment. We then asked … Market-based instruments include pollution or ecotaxes, tradable pollution permits and product labelling. Have questions or comments? Explain why command-and-control approaches to reducing pollution are inefficient. Question: Compared To A Command And Control Government Approach To Reducing Pollution, A Market-based System Of Tradable Pollution Allowances Is: O A. Adopted a LibreTexts for your class? It forces firms to install equipment which would reduce the amount of pollution produced while production which means the firms now have to factor the social costs also in their production costs. The use of Command and Control in regulation involves the government or similar body to “command” the reduction of pollution (e.g. In effect, command-and-control regulation requires that firms increase their costs by installing anti-pollution equipment; firms are thus required to take the social costs of pollution into account. Existing firms often argue (and lobby) that stricter environmental standards should not apply to them, only to new firms that wish to start production. It also creates incentives to reduce pollution … For more information contact us at info@libretexts.org or check out our status page at https://status.libretexts.org. In environmental policy, CAC approach basically involves setting standards to protect or improve environmental quality. In 1997, Colombia initiated an innovative nationwide program to stem water pollution. The command-and-control approach to mobile device management is rapidly becoming outdated. Suppose that the goal of public policy is to reduce the level of emissions. 2 Joint Economic Committee Study 2 In circumstances where hot spots may occur due to a … O A. Explain what is meant by incentive approaches to pollution reduction and discuss examples of them, explaining their advantages and disadvantages. O C. The government imposing taxes intended to bring about an … 15.14: Reading: Command-and-Control Regulation, https://chem.libretexts.org/@app/auth/3/login?returnto=https%3A%2F%2Fchem.libretexts.org%2FCourses%2FLumen_Learning%2FBook%253A_Microeconomics-2_(Lumen)%2F15%253A_Module%253A_Public_Goods%2F15.14%253A_Reading%253A_Command-and-Control_Regulation, 15.13: Outcome: Government Involvement and Externalities, 15.15: Reading: The Benefits and Costs of U.S. Environmental Laws, http://cnx.org/contents/ea2f225e-6063-41ca-bcd8-36482e15ef65@10.31:24/Microeconomics, information contact us at info@libretexts.org, status page at https://status.libretexts.org. Command-and-Control approach An approach that involves the government imposing quantitative limits on the amount of pollution firms are allowed to emit or requiring firms to install specific pollution control devices. Command-and-control regulation sets specific limits for pollution … 7.0 B. is efficient because it does not require the government to know the firms' cost of reducing pollution. The idea that taxation can be used to correct or internalise externalities was first introduced by A.C. … A) In 1990 Congress approved measures designed to reduce sulfur dioxide emissions to 8.5 million tons annually by 2010. These types of laws, which specify allowable quantities of pollution and which also may detail which pollution-control technologies must be used, fall under the category of command-and-control regulationHome. 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