The use of regulatory instruments alone, results in weak incentives to adhere for firms and high costs of enforcement for agencies.

Question

Quizplus · Accepted Answer

Regulatory instruments such as laws and regulations alone do not provide strong incentives for firms to adhere to them and require high costs for agencies to enforce them. Other instruments such as economic incentives and voluntary measures may be necessary to complement regulatory instruments.

The Use of Regulatory Instruments Alone, Results in Weak Incentives