‘On the Pitfalls of Performance Standards’

“Performance standards have long been heralded as a superior approach to regulating business activity. Such standards impose legal obligations to avoid or achieve specified outcomes, but then leave it to each firm to determine how to meet their outcome obligation. An emissions limit is a paradigmatic example of a performance standard. It requires firms to reduce their pollution to below a specific level but does not mandate any particular method of pollution control. Firms are free to innovate and find the lowest cost means of achieving the regulatory goal …” (more)

[Cary Coglianese, Oxford Business Law Blog, 26 October]

First posted 2017-10-26 06:12:41

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