Chapter VIII.20: Management-based regulation

TL;DRAbstract

Environmental regulators have embraced management-based regulation as a flexible instrument for addressing a range of important problems often poorly addressed by other types of regulations. Under management-based regulation, regulated firms must engage in management-related activities oriented towards addressing targeted problems, such as planning and analysis to mitigate risk and the implementation of internal management systems geared towards continuous improvement. In contrast with more restrictive forms of regulation which can impose one-size-fits-all solutions, management-based regulation offers firms greater operational choice about how to solve regulatory problems, leveraging firms' internal informational advantage to innovate and search for alternative measures to achieve the intended results more cost-effectively. Drawing on both illustrative cases of management-based regulation and available empirical research, this chapter explains management-based regulation's relative adv

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