ABSTRACT
Governments can play an important role in preventing and controlling pollution, either through legislation or through economic policies. Legislation is the oldest, most widespread approach. It is sometimes referred to as the ‘command and control’ or ‘regulatory’ approach. The basic premise is that the state places restrictions on businesses and municipalities in order to reduce pollution. It monitors the businesses and municipalities to make sure they are complying with the regulations, or it establishes a system of self-reporting with periodic checks and audits, and it punishes any violations. Over time, the theory goes, regulations will create a ‘climate of deterrence’ that will discourage violations.
