ABSTRACT
This chapter deals with various theories of regulation and how they are used within the energy sector to protect the environment.
The expression ‘regulation’ is found in both legal and non-legal contexts. Essentially, it is a form of behavioural control by a number of methods but in this context, it is a politico-economic concept best understood by reference to different systems of economic organisations and the legal forms that maintain them. In most industrialised societies, there is a tension between the two main systems of economic organisation: the market system and the collectivist system.
