Abstract

Broadly defined, environmental regulation (ER) is any state intervention in the market in order to protect the environment, be it by general rules or individual action. The basic orientation of ER depends on how it perceives nature: as ‘fate,’ as a resource, as ‘environment,’ or as biosphere. ER is faced with difficulties such as uncertainty of its object, clash of ecological and economic interests, and divergence of scientific and everyday-life experience, but has developed means of coping, including the precautionary principle, cost–benefit analysis, and public participation procedures. ER widely employs ‘command and control’ means. Economic incentives, which are praised for being more efficient, have proven more effective only under limited conditions. There is a general trend towards self-regulation by society, driven by ethical concerns, reorganization of industry, and consumer-based market mechanisms. In any event, the backing of self-regulation by (‘indirect’) governmental ER remains indispensable. Court review of ER is usually opened for third parties, including environmental associations where the interest to defend is collective rather than individual. With the growing globalization of environmental deterioration and public awareness, ER has become internationalized. As major patterns of development, a ‘market,’ a ‘relocation,’ and a ‘commons’ trajectory may be identified. They have led to a wealth of international environmental regimes which, challenged by the World Trade Organization system, will have to be streamlined and strengthened in the future.

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