<REGULATION+LEGISLATION>

Command and control (CAC) regulation and legislation refers to the direct rules or laws governing an activity or industry, stating what is permitted and what is illegal. For example, the Environmental Protection Agency (founded in 1970) oversees all environmental laws in the USA. This includes establishing environmental regulation and legislation that limits pollution to a certain maximum level. In 2020, the UK government banned the use of credit cards to place bets, in an attempt to curb the problem of gambling. A total of 24 million adults in the UK gamble, with 10.5 million of those doing so online. In 2019, the UK opened its first National Health Service (NHS)

Gambling Clinic for children owing to growing concern that gambling is being fuelled by online gaming sites and targeted adverts aimed at young people.

Other examples of CAC regulation and legislation include:

 Minimum age laws for the purchase of demerit goods such as alcohol,

tobacco products, high-sugar and high-caffeine energy drinks, and

betting (gambling).

Environmental protection laws that specify allowable quantities of pollution (legally

enforceable numerical limits to pollution) or the pollution-control technologies that must be

used in certain industries.

 Outlawing tobacco advertising in the mass media, such as television, radio and newspaper

advertisements.

 Banning smoking in public areas such as parks and beaches.

 Laws requiring packaging to carry healthcare warnings about the dangers of smoking.

However, there are several limitations of CAC regulation and legislation, such as:  It can be expensive and time consuming for firms to change their processes to meet these standards. As production costs increase, this can reduce their competitiveness and profitability, thereby possibly leading to j ob losses in some industries.  They do not offer any incentive for firms to improve the quality of their production beyond the standards set by the law. For example, as soon as car manufacturers have met the stipulated environmental standards there is no incentive to do any better.  Legislation is inflexible and applies to all firms in the regulated industry. CAC policies do not draw any distinction between large multinational firms that would find it relatively easy and inexpensive to meet these standards and smaller firms that are likely to struggle with the compliance costs of meeting the standards and could even go out of business as a result

|<|>| Many of the reasons why governments tax and subsidise some industries So far we have seen how governments intervene using taxes, subsidies, and direct provision, but t

The law wants children to receive education.

Legislation (Statutes, Acts of Parliament)

What it is: Primary law. The formal, authoritative text passed by the legislature.

Who makes it: Elected legislators (MPs, Lords in Parliament).

Process: Lengthy democratic process (readings, debates, committee scrutiny, votes in Commons and Lords, Royal Assent).

Nature: Broad principles, general prohibitions, and framework. It sets goals, creates agencies, and grants powers.

Example: The Health and Safety at Work etc. Act 1974. It states broad duties like: "It shall be the duty of every employer to ensure, so far as is reasonably practicable, the health, safety and welfare at work of all his employees."

the regulations say students must receive x many hours per year

This is accomplished by making it illegal to not do it, fines etc...

"Let's be honest, sometimes we just want people to shut up and do what they are told right, especially teachers

What we want: The school board sets the curriculum.

How we will do it: The teacher's lesson plan and classroom rules.

Method #1: "You must solve this problem using Method A."

Method #2: You wil get a reward if you complete you work on time

Market-Based Regulation (Economic incentives)

• LEGISLATION: The "Climate Change Act" sets a net-zero target.

• REGULATION: The "Emission Trading Scheme Rules" detail how permits are allocated.

• COMMAND + CONTROL REGULATION: "All factories must reduce emissions by 40% by 2030."

• MARKET-BASED REGULATION: