Command and Control (CAC) regulation finds common usage in academic literature and beyond. The relationship between CAC and environmental policy is considered in this article, an area that demonstrates the application of this type of regulation. However, CAC is not limited to the environmental sector and encompasses a variety of different fields.

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”.McManus, P. (2009) Environmental Regulation. Australia: Elsevier Ltd. This approach differs from other regulatory techniques, e.g. the use of economic incentives, which frequently includes the use of taxes and subsidies as incentives for compliance.Baldwin, R., Cave, M., Lodge, M. (2011) Understanding Regulation: Theory, Strategy and Practice. 2nd ed. Oxford: Oxford University Press The ‘command’ is the presentation of quality standards/targets by a government authority that must be complied with. The ‘control’ part signifies the negative sanctions that may result from non-compliance e.g. prosecution.Abbot, C. (2009) The Regulatory Enforcement and Sanctions ACT 2008. Environmental Law Review 38

CAC encompasses a variety of methods. Influencing behaviour through: laws, incentives, threats, contracts and agreements. In CAC, there is a perception of a problem and the solution for its control is developed and subsequently implemented.Holling, C., Meffe, G. (1996) Command and Control and the Pathology of Natural Resource Management. "Conservation Biology. 10: 2. pp. 328-337."

In the case of environmental policy and regulation, the CAC approach strongly relies on the use of standards to ensure the improvements in the quality of the environment. The CAC approach uses three main types of standards. These are ambient standards, emission standards, and technology standards. Although these standards can be used individually, it is also possible to use the standards in combination. In fact, in most pollution control programs, it is the case where there is a combination of standards being implemented.

Although environmental policy has a long history, a proliferation of policy making in this area occurred in the 1970s and continued to today. The CAC approach dominated policy in industrial nations during this decade because the general focus was on that of remedial policies rather than more comprehensive prevention techniques.Bocher, M. (2011) A theorectical framework for explaining the choice of instruments in environmental policy. "Forest Policy and Economics'. Elsevier Whilst many view CAC negatively, direct regulatory control is still used in many countries' environmental policy.

Enforcement and compliance To deliver its objectives, direct regulation must ensure the highest level of compliance possible. This can be achieved through appropriate implementation and enforcement. Non-compliance to CAC regulation presents a serious challenge to its effectiveness The manner in which CAC is enforced differs between countries. For example, in the US, some regulators who are tasked with implementing CAC techniques are given rule-making powers. Whereas in the UK, regulatory standards are more commonly set by departments of government. This is achieved through both primary and secondary legislation which is subsequently exacted by regulatory bureaucracies. Regulation differs within countries as well, in the UK the current regulatory sanctioning system possesses variations between powers and practices among regulators.Macrory, R. (2006) Regulatory Justice: Making Sanctions Effective. Final Report Enforcement of CAC often involves the use of uniform sanctions, this can result in small businesses feeling the burdens of regulation more severely than companies of a larger size.

Strengths and weaknesses of approach A CAC approach in policy is used for several reasons. It has been proposed that by imposing fixed standards with the force of law behind them, CAC can respond more quickly to activities which do not abide by the set standards. It also has benefits politically as the regulator (often the government) is seen to be acting swiftly and decisively.

It is far from a problem free form of regulation; the 1980s in particular saw CAC subject to widespread criticism. A good number of the critics tend to favour market-based strategies and are often dubious of the merits of governmental regulatory approaches.

Some issues highlighted include:

Regulatory capture: The concern here is that the relationship between regulators and the regulated may lead to the interests of the public being neglected. In this situation it is possible for the relationship to become too close, leading to capture. This may result in the regulator protecting the interests of the regulated. Legalism: Command and control has been accused of stifling competition and enterprise. It has been posited that this is an inevitable consequence of the inflexible and complicated rules that can be created by the approach. Over-regulation can result, which in turn can lead to ‘over-inclusive’ regulation. Standard-setting: Selecting the appropriate standards when implementing a CAC regime is crucial if the regulation is to avoid causing detriment to those that it regulates. This is a challenging obstacle to overcome as the amount of information required can be severe. Enforcement: This constitutes a very significant dilemma for a CAC regulatory approach. One of the key issues is the expense of enforcement, especially when a complex system of rules has been developed. There are also problems of scope.

Critics of CAC often point to incentive-based regulation as an alternative with terms used such as smart regulation, management-based regulation, responsive regulation and meta-regulation. Possible benefits of this approach may include cheaper administration costs and a reduction in the risk of regulatory capture. However the view that incentive-based regulation is radically different from CAC has been scrutinised.FC Simon (2017). Meta-regulation in practice: Beyond normative views of morality and rationality. Routledge The advantages can be exaggerated, a complex system of rules is often necessary to allow an effective system, this can cause many incentive-based schemes to appear to replicate some of the characteristics of CAC. Inspection and enforcement may also be essential to prevent evasion of liability, again resembling CAC and possibly removing the posited benefits in terms of cost. While practices may be changed at a superficial level through the use of CAC, it may not be able to achieve the changes of behaviour necessary for more sustainable environmental practices.Gunningham, N., Grabosky, P. (1998) Smart Regulation: Designing Environmental Policy. USA: Oxford University Press. There are some commentators on the topic who prefer to use ‘direct regulatory instrument’ instead of ‘command and control’ instrument because of the negative connotations surrounding the term.Goulder, L., Parry, I. (2008) Instrument Choice in Environmental Policy. Review of Environmental Economics and Policy. 2: 2. pp. 152-174.

Efficiency Much of the literature on regulatory instruments considers efficiency in terms of monetary costs. CAC has been labelled by many critics as ‘inefficient’ as a system that spends resources but generates little revenue.Gunningham, N., Sinclair, D. (2002) Leaders and Laggards: Next Generation Environmental Regulation. UK: Greenleaf Publishing Ltd. The cost of compliance is perceived to be high, which can result in costs that are higher than the sanctions for non-compliance. A summary of 10 studies demonstrated significant differences in cost between CAC and least cost alternatives.Tietenberg, Tom (1991) Economic Instruments for Environmental Regulation. "In: Helm, D., Pearce, D. (ed.) Economic Policy towards the Environment. Oxford: Oxford University Press." Empirical data suggests that CAC regulations, especially government subsidies in agriculture,"Government Subsidies for Agriculture May Exacerbate Deforestation, says new UN report". Sustainable Development Goals. United Nations. 3 September 2015. Retrieved 17 August 2020. often fuel environmental damage, deforestation and overfishing in particular.

Some have moved to defend certain aspects of a CAC approach, arguing against the commonly held belief that these regimes are inherently inefficient. Economics incentives are frequently referred to as a considerably more efficient approach to regulation. The most commonly used incentives in this method relate to tax. The administrative costs of tax collection can be understated. Advocates of incentives have been accused of making simplifying assumptions and not fully taking into account the costs of administrating tax systems.Cole, D., Grossman, P. (2002) Toward a total-cost approach to environmental instrument choice. 20. pp. 223-241. In some circumstances, CAC regulation can end up being a less costly option. Whilst economic instruments may act to reduce compliance costs, in certain cases their total costs may actually be higher, This may stem from the high level of monitoring that is required to make an incentivised method viable and successful.

Environmental regulation

Application The use of Command and Control in regulation involves the government or similar body to “command” the reduction of pollution (e.g. setting emissions levels) levels and to “control” the manner in which it is achieved (e.g. by installing pollution-control technologies). It has been argued that CAC has the potential to be effective under certain conditions. Often its effectiveness can be determined by whether the problem has a diffuse or a point source. A CAC approach is relatively compatible with point source and regulation of these can often achieve success. On the other hand, CAC struggles to appropriately tackle issues that have a diffuse, non-point source.Landy, M. Rubin, C. (2001) Civic Environmentalism: A new approach to Policy. Washington DC: George Marshall Institute Evans draws on the following example: “it is relatively easy to regulate the emissions from 10 large coal burning power stations in a single country, but far less easy to monitor the emissions caused by millions of motorists or the effluent discharges from tens of thousands of farms across the world.”

In Environmental Policy, CAC is characterised by 3 different types of standards, the use of the standards is determined by various factors, including the nature of the environmental problem and the administrative capacities of the governing body:Ogus, A. (2004) Comparing Regulatory Systems: Institutions, processes and legal forms in industrialised countries. In: Cook, P., Kirkpatrick, C. Minogue, M., Parker, D. (Eds.) UK: Edward Elgar Publishing Ltd.

Environmental Standards. These are centrally driven standards. A legally enforceable numerical limit is often used to determine the 'standard', but the term can be used more broadly, describing more general rules about acceptability. Target Standards. The condition of the environment into which the pollutant enters is central to these standards. It can be subdivided into ambient and receptor standards. Ambient standards set the targets that apply to the regulators and policy makers. Whereas Receptor standards apply to the regulated and state that a specified maximum level is not to be exceeded. Performance Standards. These determine what releases of a pollutant into the environment are acceptable.