Cooperation and the Capacity for Control: Regulatory Styles and the Evolving Influence of Environmental Regulations in the UK

Abstract

This paper seeks to contribute to the broader debate on how to promote ‘better regulation’ by examining the origins and influence of different regulatory styles. More particularly it examines the extent to which economic theories of cooperation can help to explain the presence of the cooperative regulatory style that has long been associated with the implementation of environmental regulations in the United Kingdom. After reporting the results of empirical research that focused on these issues, it concludes that cooperative regulatory styles are likely to depend upon: (a) the presence of inter-dependencies between regulators and firms; and either (b) the presence of trust amongst stakeholders; or (c) the effective exclusion of those stakeholders from influence in the regulatory decisionmaking process. Highlighting the importance of recent changes in each of these three areas in the United Kingdom, it explains the factors that have led to a shift away from a purely cooperative approach towards what has been termed a more ‘responsive’ or ‘risk-based’ approach. Recognising that such changes have been driven by a desire to enhance the efficacy and the efficiency of environmental regulation, and by concerns about the lack of transparency and accountability in the regulatory process, it concludes that such evolutions represent an important contribution to the debate on regulation and its reform.