command and control externalities


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PDF UNIT 5 COMMAND AND CONTROL POLICY APPROACH*

The third rationale for government intervention is due to externalities Environmental regulations are broadly classified into two categories: (i) command and 

  • What is command and control in economics?

    Definition.
    Command and Control (CAC) Regulation can be defined as “the direct regulation of an industry or activity by legislation that states what is permitted and what is illegal”.

  • What is the command and control approach?

    Command and Control is one of the many approaches used in public policy.
    It comprises of rules and legislation imposed by governments, and is often backed up by the threat of coercion, fines or state penalties.

  • What is an example of command and control?

    Other laws required the installation of certain equipment—for example, on automobile tailpipes or on smokestacks—to reduce pollution.
    Both laws that specify allowable quantities of pollution and laws that detail which pollution-control technologies must be used fall under the category of command-and-control regulation.

  • In environmental economics: Command and control.
    Command and control is a type of environmental regulation that allows policy makers to specifically regulate both the amount and the process by which a firm should maintain the quality of the environment.
    Often it takes the form of a reduction of…

In effect, command-and-control regulation requires that firms increase their costs by installing anti-pollution equipment; firms are thus required to take the  Autres questions
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