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Policy Instruments And Its Impact On The Government Standards

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Over the last four decades, triggered by the Environmental Progressive Era, policy instruments have been developed to reduce environmental pollution. Policy instruments shifted from the most traditional direct government regulation instrument to more flexible approaches of market-based incentives and voluntary programs. Direct regulation involves government standards to businesses and industries to reduce pollution. Market-based instrument generates an environmentally friendly business behavior. With the emergence of voluntary programs, businesses exceed commitment to environmental sustainability goals of the government standards. Each policy instrument has its strengths and weaknesses that limit them to be applicable to only certain environmental context. According to my point of view, an integrated approach of the three categories of environmental policy instruments, direct regulation, market-based instruments, and voluntary programs, rather than solely focusing on a single instrument will lead to an optimal approach for environmental policy implementation.
Direct regulation, also known as the command-and-control approach, is the most widespread policy instrument (Vig & Kraft, 2013). It sets technology-based or performance-based standards, and defines explicit directives for firms regarding pollution control levels. Command-and-control regulatory approach imposes a uniform standard to a broad category of nation-wide polluting sources. Standards are set solely based on the

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