Command and Control (CAC) Regulation can be defined as “the direct regulation of an industry or activity by legislation that states what is permitted and what is illegal”. This approach differs from other regulatory techniques, e.g. the use of economic incentives , which frequently includes the use of taxes and subsidies as incentives for compliance. [2]
What is the difference between command and control?
is that control is to exercise influence over; to suggest or dictate the behavior of while command is to order, give orders; to compel or direct with authority. is that control is (countable|uncountable) influence or authority over while command is an order to do something. Other Comparisons: What's the difference?
What are the problems of a command economy?
Pros and Cons of a Command Economy
- Ignores consumer preferences
- Inefficiencies
- Innovation is discouraged
Who controls the economic system in a command economy?
The term command economy refers to an economy in which the government dictates the production, supply, and prices of goods and services. In a command economy, the state owns and controls all resources, rather than allowing public supply and demand to influence the nation’s economy. The former Soviet Union and North Korea are two command economy examples, which are considered a socialist form of government.
What is a command economic system is characterized by?
A command economic system is characterized by a dominant centralized power (usually the government) that controls a large part of all economic activity. This type of economy is most commonly found in communist countries. It is sometimes also referred to as a planned economic system because most production decisions are made by the government (i ...
What does command and control mean in economics?
In environmental economics: Command and control. Command and control is a type of environmental regulation that allows policy makers to specifically regulate both the amount and the process by which a firm should maintain the quality of the environment.
Which is an example of command-and-control regulation?
Other laws required the installation of certain equipment—for example, on automobile tailpipes or on smokestacks—to reduce pollution. Both laws that specify allowable quantities of pollution and laws that detail which pollution-control technologies must be used fall under the category of command-and-control regulation.
How does command-and-control regulation work?
"Command-and-control" is in essence a regulatory approach whereby the government "commands" pollution reductions (e.g., by setting emissions standards) and "controls" how these reductions are achieved (e.g., through the installation of specific pollution-control technologies).
What does command control require?
In effect, command-and-control regulation requires that firms increase their costs by installing anti-pollution equipment; firms are thus required to take the social costs of pollution into account. Command-and-control regulation has been highly successful in protecting and cleaning up the U.S. environment.
What is the difference between command & control?
Command: The exercise of authority based upon certain knowledge to attain an objective. Control: The process of verifying and correcting activity such that the objective or goal of command is accomplished.
Why is command and control important?
Command and control helps commanders make the most of what they have—people, information, material, and, often most important of all, time. In the broadest sense, command and control applies far beyond military forces and military operations.
How does a command and control policy differ from a market-based policy?
What is the difference between command-and-control policies and market-based policies toward externalities? Command-and-control policies regulate behavior directly, whereas market-based policies provide incentives for private decisionmakers to change their behavior.
Is cap and trade a command and control?
Cap and trade is an approach that harnesses market forces to reduce emissions cost-effectively. Like other market-based strategies, it differs from “command-and-control” approaches where the government sets performance standards or dictates technology choices for individual facilities.
Why is it called cap and trade?
What Is Cap and Trade? Cap and trade is a common term for a government regulatory program designed to limit, or cap, the total level of emissions of certain chemicals, particularly carbon dioxide, as a result of industrial activity. Proponents of cap and trade argue that it is a palatable alternative to a carbon tax.
What is a command and control business?
A command and control approach to leadership is authoritative in nature and uses a top-down approach, which fits well in bureaucratic organizations in which privilege and power are vested in senior management. It is founded on, and emphasizes a distinction between, executives on the one hand and workers on the other.
What is distributed command and control?
An overview of the distributed command-control (C2) problem in which a mission is carried out by human operators, and unmanned-manned vehicles. All entities, both humans and vehicles, can be considered as members of a cooperative team working towards accomplishing a common goal.
Which is an example of a command and control approach to environmental policy?
Command-and-control approach and environment standards It is a mandated level of performance enforced through a piece of legislation. A few examples are the limits set on the volume of timber that could be harvested, bans on the cutting of trees, and maximum levels legally allowed for pollution emissions.
What is command and control?
Command-and-control regulation has been highly successful in protecting and cleaning up the US environment. In 1970, the Environmental Protection Agency was created to oversee all environmental laws. In the same year, the Clean Air Act was enacted to address air pollution. Just two years later, in 1972, Congress passed and the president signed ...
What are the shortcomings of command and control?
Although such regulations have helped to protect the environment, they have three shortcomings: they provide no incentive for going beyond the limits they set ;
Why would the second option be more effective?
I personally believe an economist would say the second option (official tourist centers) would be more effective because the villagers would have an incentive (tourist income to see elephants) to protect the national parks, where as the first option yields little to no incentive to enforce protection of the elephants.
Who writes command and control regulations?
Third, command-and-control regulations are written by legislators and the Environmental Protection Agency, so they are subject to compromises in the political process. Existing firms often argue—and lobby—that stricter environmental standards should not apply to them, only to new firms that wish to start production.
Is command and control regulation inflexible?
Second, command-and-control regulation is inflexible. It usually requires the same standard for all polluters, and often the same pollution-control technology as well. This means that command-and-control regulation draws no distinctions between firms that would find it easy and inexpensive to meet the pollution standard—or to reduce pollution even ...
What is command economy?
The Balance. A command economy is where a central government makes all economic decisions. Either the government or a collective owns the land and the means of production. It doesn't rely on the laws of supply and demand that operate in a market economy. A command economy also ignores the customs that guide a traditional economy.
Who developed the command economy?
Viennese economist Otto Neurath developed the concept of a command economy after World War I. Neurath proposed it as a way to control hyperinflation. The phrase “command economy” comes from the German word "Befehlswirtschaft.”.
How to identify a modern centrally planned economy?
You can identify a modern, centrally planned economy by the following five characteristics: The government creates a central economic plan. The five-year plan sets economic and societal goals for every sector and region of the country . Shorter-term plans convert the goals into actionable objectives.
What are the advantages and disadvantages of a command economy?
A command economy has a few advantages, although they come with a few important disadvantages as well. Advantages. Can manipulate large amounts of resources for large projects without lawsuits or environmental regulatory issues.
What is the central government's goal?
Its goal is to allocate resources to maximize social welfare. The main advantage is that the government can rapidly move resources and transform the structure of society to achieve a national goal.
Which countries have command economies?
Here are examples of the most well-known countries with command economies: Belarus: This former Soviet satellite is still a command economy. 2 The government owns 80% of the country's businesses and 75% of its banks. China: After World War II, Mao Tse Tung created a society ruled by Communism.
How can a planned economy help the economy?
Planned economies can quickly mobilize economic resources on a large scale. They can execute massive projects, create industrial power, and meet social goals. They aren't slowed down by lawsuits from individuals or environmental impact statements.
What is the traditional model of command and control?
The traditional model of command and control typically involved areas of environmental concern being dealt with by national governments. In recent decades, transboundary environmental problems have risen in prominence.
What is the command part of CAC?
The ‘command’ is the presentation of quality standards/targets by a government authority that must be complied with. The ‘control’ part signifies the negative sanctions that may result from non-compliance e.g. prosecution. CAC encompasses a variety of methods.
Why is CAC regulatory approach so difficult?
The international nature of many contemporary environmental issues makes CAC regulatory approaches difficult. Since the 1970s enthusiasm for the implementation of economic incentives for regulation has been on the increase. This is due, in part, to the disenchantment with command and control.
What is the relationship between CAC and environmental policy?
However, CAC is not limited to the environmental sector and encompasses a variety of different fields.
What is CAC regulation?
Definition. Command and Control (CAC) Regulation can be defined as “the direct regulation of an industry or activity by legislation that states what is permitted and what is illegal”. This approach differs from other regulatory techniques, e.g. the use of economic incentives, which frequently includes the use of taxes and subsidies as incentives ...
Why is CAC important?
CAC regulation has the potential to lead to a more rapid resolution of certain environmental policy objectives. It may also provide clarity to those that are subject to the regulation. There may be a clearer understanding of what is required and how to meet those requirements.
Why is CAC a dominant policy?
The CAC approach dominated policy in industrial nations during this decade because the general focus was on that of remedial policies rather than more comprehensive prevention techniques. Whilst many view CAC negatively, direct regulatory control is still used in many countries' environmental policy.
What happens when command and control is satisfied?
Once the command-and-control regulation has been satisfied, polluters have zero incentive to do better. Second, command-and-control regulation is inflexible. It usually requires the same standard for all polluters, and often the same pollution-control technology as well.
What are the problems with command and control?
However, economists have pointed out three difficulties with command-and-control environmental regulation. First, command-and-control regulation offers no incentive to improve the quality of the environment beyond the standard set by a particular law. Once the command-and-control regulation has been satisfied, polluters have zero incentive ...
What is command and control?
Command and control systems. Command and control are established through statutory authorities, typically in the form of a disaster management law or similar act aimed at civil protection. However, the establishment of command and control does not guarantee their effectiveness. Systems for command and control must be instituted, ...
How does command and control work?
Command and control instruments involve a government issuing a command, which sets a standard and then controlling performance by monitoring and requiring adherence to that standard. It is most commonly applied to pollution issues, where a command might be that no facility will emit more than ‘x’ units of pollutant per measured output unit or measure. In the case of minimizing GHG emissions and promoting renewables, including bioenergy, the pollutants of concern would obviously be GHGs. The command and control approach would therefore equate to setting a maximum limit on the amount of GHG emissions per unit of energy produced. This requires actually calculating GHG emissions for the entire energy supply chain, which is data intensive and time consuming. Different cutoff points would have to be developed for different energy demand sectors, for example, electricity is a higher grade fuel than heat with correspondingly higher levels of carbon emissions.
What is the command and control function of a satellite?
To support a satellite constellation and its mission, the ground system must provide a command and control function for each of the spacecraft and furnish the necessary infrastructure for the communications network. These two functions generally require separate types of ground equipment, as is the case for example in the IRIDIUM system. To support LEO constellations, the command and control function requires several transmit/receive terminals generally located in the northern latitudes as shown in Fig. 11 for the IRIDIUM system.
What is the role of the urban economy in the global economy?
The organization of the global urban economy primarily in a space of flows allows production, management, and markets (economic power) to bypass as much as possible forms of territorial regulation which exist to control them.
What is a command and control instrument?
Command and control instruments involve a government issuing a command, which sets a standard and then controlling performance by monitoring and requiring adherence to that standard.
Which type of mechanism more directly induces desired behavior?
A third type of mechanism, tax and subsidy programs, more directly induces desired behavior by providing reward subsidies for delivery of environmental goods or by imposing punitive tax or fee consequences for engaging in environmentally undesirable behavior.
What is command economy?
A command economy is when government central planners own or control the means of production, and determine the distribution of output. Command economies suffer from problems with poor incentives for planners, managers, and workers in state-owned enterprises. Central planners in a command economy are unable to rationally determine the methods, ...
Why are command economies better than free market economies?
Additionally, proponents allege that command economies have better control of employment levels than free-market economies, as they can create jobs to put people to work when necessary, even in the absence of a legitimate need for such work. Lastly, command economies are widely believed to be superior for taking decisive, coordinated action in the face of national emergencies and crises such as wars and natural disasters. Even mostly market-based societies will often curtail property rights and greatly expand emergency powers of their central governments during such events at least temporarily.
Why are capital and infrastructure unowned resources?
Because all or most productive capital and infrastructure is commonly owned or state owned in a command economy and not owned by specific individuals, they are effectively unowned resources from the users' perspective.
What is the first problem in command economy?
First is the incentive problem , and second is the economic calculation or knowledge problem. The incentive problem works in a few ways. For one, central planners and other policy makers in a command economy are all too human.
What is the difference between a free market and a command economy?
Free-market economies utilize private ownership as the means of production and voluntary exchanges/contracts. Command economy governments own the factors of production such as land, capital, and resources, and government officials determine when, where, and how much is produced.
What does it mean to get ahead in a command economy?
As a result, getting ahead in a command economy means pleasing the party bosses and having the right connections, rather than maximizing shareholder value or meeting consumer demands, so corruption tends to be pervasive.
Why are monopolies common in command economies?
Monopolies are common in command economies as these entities are considered necessary in order to meet the goals of the national economy.
major reference
Most environmental law falls into a general category of laws known as “command and control.” Such laws typically involve three elements: (1) identification of a type of environmentally harmful activity, (2) imposition of specific conditions or standards on that activity, and (3) prohibition…
environmental economics
Command and control is a type of environmental regulation that allows policy makers to specifically regulate both the amount and the process by which a firm should maintain the quality of the environment. Often it takes the form of a reduction of…
Key Concepts and Summary
Command-and-control regulation sets specific limits for pollution emissions and/or specific pollution-control technologies that firms must use.
Self-Check Questions
Consider two approaches to reducing emissions of CO 2 into the environment from manufacturing industries in the United States. In the first approach, the U.S. government makes it a policy to use only predetermined technologies. In the second approach, the U.S. government determines which technologies are cleaner and subsidizes their use.
Critical Thinking Questions
Would environmentalists favor command-and-control policies as a way to reduce pollution? Why or why not?
Overview
Efficiency
Much of the literature on regulatory instruments considers efficiency in terms of monetary costs. CAC has been labelled by many critics as ‘inefficient’ as a system that spends resources but generates little revenue. The cost of compliance is perceived to be high, which can result in costs that are higher than the sanctions for non-compliance. A summary of 10 studies demonstrated significant differences in cost between CAC and least cost alternatives. Empirical data suggest…
Definition
Command and Control (CAC) Regulation can be defined as “the direct regulation of an industry or activity by legislation that states what is permitted and what is illegal”. This approach differs from other regulatory techniques, e.g. the use of economic incentives, which frequently includes the use of taxes and subsidies as incentives for compliance. The ‘command’ is the presentation of quality standards/targets by a government authority that must be complied with. The ‘control’ part signif…
Enforcement and compliance
To deliver its objectives, direct regulation must ensure the highest level of compliance possible. This can be achieved through appropriate implementation and enforcement. Non-compliance to CAC regulation presents a serious challenge to its effectiveness The manner in which CAC is enforced differs between countries. For example, in the US, some regulators who are tasked with implementing CAC techniques are given rule-making powers. Whereas in the UK, regulatory stan…
Strengths and weaknesses of approach
A CAC approach in policy is used for several reasons. It has been proposed that by imposing fixed standards with the force of law behind them, CAC can respond more quickly to activities which do not abide by the set standards. It also has benefits politically as the regulator (often the government) is seen to be acting swiftly and decisively.
It is far from a problem free form of regulation, the 1980s in particular saw CAC subject to wides…
Environmental regulation
The use of Command and Control in regulation involves the government or similar body to “command” the reduction of pollution (e.g. setting emissions levels) levels and to “control” the manner in which it is achieved (e.g. by installing pollution-control technologies). It has been argued that CAC has the potential to be effective under certain conditions. Often its effectiveness can be determined by whether the problem has a diffuse or a point source. A CAC approach is re…