Integrative Regulation: A Principle-based Approach to Environmental Policy

Abstract

This article builds on recent field research to articulate a principle-based approach to environmental regulatory design that is applicable to a wide variety of circumstances, irrespective of political and social particularities. At its core, this approach recognises that an excessive reliance on single policies is misguided, because all instruments have strengths and weaknesses, and because none are sufficiently flexible and resilient to be able to successfully address all environmental problems in all contexts. Accordingly, a better strategy will seek to harness the strengths of individual mechanisms while compensating for their weaknesses by the use of additional instruments. That is, in the large majority of circumstances, a mix of regulatory instruments is required, tailored to specific policy goals. The article identifies a series of regulatory design principles which sequentially address the problems and opportunities arising from the application of multi-instrument mixes, and importantly, engaging a variety of first, second and third party participants in the regulatory process. The importance of choosing instrument combinations which are inherently complementary is also highlighted. Although the focus of the article is on environmental regulation, the general principles articulated should also be applicable to other areas of social regulation.