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Why do policy decision-makers opt for command and control environmental regulation? An economic analysis with special reference to Sri Lanka

Author

Listed:
  • Clevo Wilson

    () (QUT)

  • Manel Jayamanna

    ()

  • Wasantha Athukorala

    () (QUT)

Abstract

This chapter examines why policy decision-makers opt for command and control environmental regulation despite the availability of a plethora of market-based instruments which are more efficient and cost-effective. Interestingly, Sri Lanka has adopted a wholly command and control system, during both the pre and post liberalisation economic policies. This chapter first examines the merits and demerits of command and control and market-based approaches and then looks at Sri Lanka’s extensive environmental regulatory framework. The chapter then examines the likely reasons as to why the country has gone down the path of inflexible regulatory measures and has become entrenched in them. The various hypotheses are discussed and empirical evidence is provided. The chapter also discusses the consequences of an environmentally slack economy and policy implications stemming from adopting a wholly regulatory approach. The chapter concludes with a discussion of the main results.

Suggested Citation

  • Clevo Wilson & Manel Jayamanna & Wasantha Athukorala, 2010. "Why do policy decision-makers opt for command and control environmental regulation? An economic analysis with special reference to Sri Lanka," School of Economics and Finance Discussion Papers and Working Papers Series 259, School of Economics and Finance, Queensland University of Technology.
  • Handle: RePEc:qut:dpaper:259
    as

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    File URL: http://external-apps.qut.edu.au/business/documents/discussionPapers/2010/WP259.pdf
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    References listed on IDEAS

    as
    1. Motta, Ronaldo Ser A Da & Huber, Richard M. & Ruitenbeek, H. Jack, 1999. "Market based instruments for environmental policymaking in Latin America and the Caribbean: lessons from eleven countries," Environment and Development Economics, Cambridge University Press, vol. 4(02), pages 177-201, May.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Command and control vs market-based instruments; Environmental and health effects; Economic analysis; Policy implications;

    JEL classification:

    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q59 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Other

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