IDEAS home Printed from
   My bibliography  Save this article

Environmental Regulation and Competition


  • OECD


Environmental protection and competitive markets are two of the highest policy priorities. In June 2006 the Competition Committee held a roundtable discussion on potential restrictions to competition due to environmental protection. Environmental regulations can constitute substantial barriers to entry in some markets, can provide a basis for predatory behaviour in some markets and can be harmful to competition and welfare through a variety of other channels. Environmental rules can thus raise prices to consumers by reducing competition in the market. Any assessment of the costs and benefits of an existing or proposed environmental rule is incomplete without an analysis of the costs generated by any resulting reduction in competition. On the other hand, there is no firm empirical evidence that environmental policy affects the competitiveness of firms and countries. Ideally, environmental policies should be effective and among equally effective policies, the policy that is least restrictive of competition should be chosen. Environmental policy makers should ensure that environmental benefits continue to outweigh costs, including the indirect costs associated with effects on market structure. Environmental policy is first and foremost about securing public environmental goods which are demanded in their own right and which are fundamental to a well-functioning market.

Suggested Citation

  • Oecd, 2007. "Environmental Regulation and Competition," OECD Journal: Competition Law and Policy, OECD Publishing, vol. 9(2), pages 167-239.
  • Handle: RePEc:oec:dafkaa:5l4bc6pwb5d8

    Download full text from publisher

    File URL:
    Download Restriction: Full text available to READ online. PDF download available to OECD iLibrary subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oec:dafkaa:5l4bc6pwb5d8. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.