Regulation can be useful in addressing problems of large point sources of pollution and industrial effluents (Hewett, 1999). However, regulations set a minimum standard and there is no benefit or reward for those organisations that do more and so innovation will not be encouraged. There is also the inherent problem of monitoring the regulations and making sure the regulations evolve in keeping with changing scientific and technological developments. In practice, many countries employ a policy mix of complementary measures, including direct regulation, voluntary
agreements and market-based instruments, to mitigate climate change. It seems different measures serve different roles although environmental taxation has recently assumed a key role in such policy mixes.
Regulation can be useful in addressing problems of large point sources of pollution and industrial effluents (Hewett, 1999). However, regulations set a minimum standard and there is no benefit or reward for those organisations that do more and so innovation will not be encouraged. There is also the inherent problem of monitoring the regulations and making sure the regulations evolve in keeping with changing scientific and technological developments. In practice, many countries employ a policy mix of complementary measures, including direct regulation, voluntaryagreements and market-based instruments, to mitigate climate change. It seems different measures serve different roles although environmental taxation has recently assumed a key role in such policy mixes.
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