Command and control (cac), Public Economics

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Command and Control (CAC)

In earlier times pollution abatement was usually by means of regulatory approach also known as CAC measures, which were in the form of imposing bans, specifying quotas and laying down standards for polluting activities. Under the CAC approach certain economic activities, considered to be polluting, are prohibited. In other cases, a quota for many polluting activities are determined and allocated among firms through licensing.

According to the CAC approach, either the government or its designated body fixes the standards for various pollutants (liquid, gas and noise) emerging out of various pollution sources. The standards are fixed by keeping in view the assimilative capacity of the ambient environment as well as the health impacts on human beings living in the area, and existing natural resources. In order to regulate the environmental pollution there could be two types of standards:

a) Ambient environment standards,

b) Industry specific standards.

The ambient environment standards refer to the limits set for various pollutants that is considered to be safe for living beings and property. These standards have been prescribed for ingredients of the environment such as air, water and noise.


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