Unit 11 - Command And Control Regulations Flashcards
Bans
Whatever activity is being identified is prohibited
Upon violation there is a punishment
Chicago Plastic Bag Ban
The city of Chicago banned single-use plastic bags to reduce plastic waste
After implementation, they introduced thicker (reusable) bags, but people treated them the same as normal bags and then plastic waste doubled from it
Following this, Chicago introduced a $0.07 tax on plastic bags and that reduced plastic waste significanlty
Considerations on Bans: good and bad
Bans work best when there is a easy alternative to switch to
Bans may have unintended consequences, so adaptive management is necessary
Non-tradable quotas
a prescribed number of something, that can’t be shared or traded
Hunting liscense, Montreal Protocol
Technology Standards
Dictates a particular technology that must be followed when doing something
All cars must have catalytic converters
All coal plants must have NO2 Scrubbers
Procedural Standards
Dictates a particular procedure that must be followed when doing something
You cannot cross the street until the white walking guy appears
Performance based standards
Dictates a performance standard for certain activities/products
Allows those affected to use innovation and flexibility to meet those goals
This is the preferred method because it states an outcome, and allows for innovation to meet that outcome
Regulations vs. Economic Tools
Command and control is favorable to politicians and people, it is clear cut and both parties know what they are getting
The only people who don’t like regulations are economists
Andrew Leach argument on Carbon Tax vs. Regulations
Argues carbon taxes are only effective if you can put them in place
Regulations and subsidies are highly inefficient, but they might be the better choice at times if you cannot put in a carbon tax or a carbon tax at a high enough level
