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A model of benchmarking regulation: revisiting the efficiency of environmental standards

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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, in a variety of contexts, that standards can provide efficient incentives to improve environmental performance.

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  • Joschka Gerigk & Ian A. MacKenzie & Markus Ohndorf, 2014. "A model of benchmarking regulation: revisiting the efficiency of environmental standards," Discussion Papers Series 519, School of Economics, University of Queensland, Australia.
    • Handle: RePEc:qld:uq2004:519
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    File URL: https://economics.uq.edu.au/files/45970/519.pdf
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    1. repec:zbw:inwedp:662016 is not listed on IDEAS
    2. Ruiqi Wang & Huanchen Tang & Xin Ma, 2022. "Can Carbon Emission Trading Policy Reduce PM2.5? Evidence from Hubei, China," Sustainability, MDPI, vol. 14(17), pages 1-21, August.
    3. Ulrich Morawetz & Dieter Mayr & Doris Damyanovic, 2016. "Ökonomische Effekte grüner Infrastruktur als Teil eines Grünflächenfaktors. Ein Leitfaden," Working Papers 662016, University of Natural Resources and Life Sciences, Vienna, Department of Economics and Social Sciences, Institute for Sustainable Economic Development.
    4. 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, vol. 11(8), pages 1-14, April.
    5. Qing Chen & Chengjiang Li, 2024. "The Green Paradox in NEV Manufacturing: Regulatory Impacts on Innovation from a Stakeholder Perspective," Energies, MDPI, vol. 17(14), pages 1-24, July.

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    More about this item

    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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