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Command-and-Control

The Traditional Regulatory Policies, also called Command-and control policies, have been used to address pollution.  While these policies are basically blanket solutions for industries with pollution problems they are not always the most efficient methods available; however, they are still widely used solely or as an integral part of other regulations.  

Design Standard is one traditional regulation that is often imposed.  These standards reflect current technology and give specific rules about what type of pollution treatment must be used (a specific smokestack scrubber). A downside to this is that it's hard for any entity, especially a centralized government agency, to stay on the cutting edge of pollution control technology.

Performance Standard is another common traditional regulation.  These standards set an exact limit for the amount of pollution allowed. Or more often, they can set a limit on emissions within a certain time period, which doesn't guarantee a reduction in pollution (a performance standard of "x" pollution units per hour might not decrease pollution if the firm is allowed to run 24 hours a day, 7 days a week). 

Input Standard is the last traditional regulatory policy discussed in this section.  These standards mandate what kind of production resources can be used (i.e. low-sulfur coal only). A downside to this is that it doen't allow firms to be flexible and responsive in their efforts to reduce pollution, considering that the prices of inputs may spike or drop suddenly. These price fluctuations, combined with mandatory use of certain inputs puts a burden on the polluting firms and takes from them their choice in the matter.

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