17.2 Pollution-Reduction Policies

We examine three different types of policies designed to bring about the
optimal amount of pollution abatement. These are direct regulatory
controls, emissions taxes, and cap-and-trade systems.

Direct Regulatory Controls

Direct regulatory control is the form of environmental policy that is used
most often in Canada and the United States, although it is often invisible
to consumers. (Policies of direct regulatory control are sometimes
referred to as command-and-control policies.) Automobile emissions
standards are one example. The standards must be met by all new cars
that are sold in Canada. They require that emissions per kilometre of a
number of smog-producing pollutants be less than certain specified
amounts, and the standards are the same no matter where the car is
driven.

Another form of direct regulatory control is the simple prohibition of
certain polluting behaviours. For example, many cities and towns prohibit
the private burning of leaves and other trash because of the air pollution
(as well as the fire danger) the burning would cause. Many communities
have banned the use of wood-burning stoves for the same reason. Some
provinces outlaw the use of weed-control products because of the