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A Model of Benchmarking Regulation: Revisiting the Efficiency of Environmental Standards

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  • Joschka Gerigk
  • Ian MacKenzie
  • Markus Ohndorf

Abstract

The conventional economic argument favors the use of market-based instruments over ‘command-and-control’ regulation. This viewpoint, however, is often limited in the description and characteristics of the latter; namely, environmental standards are often portrayed as lacking structured abatement incentives. Yet contemporary forms of command-and-control regulation, such as standards stipulated via benchmarking, have the potential to be efficient. We provide a first formal analysis of environmental standards based on performance benchmarks. We show that under specific conditions, standards can provide efficient incentives to improve environmental performance. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Joschka Gerigk & Ian MacKenzie & Markus Ohndorf, 2015. "A Model of Benchmarking Regulation: Revisiting the Efficiency of Environmental Standards," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(1), pages 59-82, September.
  • Handle: RePEc:kap:enreec:v:62:y:2015:i:1:p:59-82
    DOI: 10.1007/s10640-014-9815-7
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    3. Guichuan Zhou & Wendi Liu & Liming Zhang & Kaiwen She, 2019. "Can Environmental Regulation Flexibility Explain the Porter Hypothesis?—An Empirical Study Based on the Data of China’s Listed Enterprises," Sustainability, MDPI, Open Access Journal, vol. 11(8), pages 1-14, April.

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    More about this item

    Keywords

    Environmental standards; Command-and-control regulation; Benchmarking; Relative performance mechanism; Contests; L51; Q50; Q58;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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