Microeconomics › Section L · Environmental protection and negative externalities › Topic L.2
Command-and-control regulation
The oldest fix for pollution is the simplest: don't price the harm - forbid it, cap it, or order the equipment that reduces it. Command-and-control regulation delivers certainty about what happens, and pays for that certainty in the one currency markets never waste: flexibility.
In this topic
- Regulation by order
- What command gets right
- The hidden bill of uniformity
- Worked example: what uniformity costs
- Technology mandates freeze technology
- Monitoring and enforcement
- Where command shines
- Worked example: matching the instrument to the problem
- Common mistakes to avoid
- Key takeaways
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