Environmental Sustainability and Regulation: To-Down Versus Bottom-Up Regulation

Environmental regulation can be broadly divided into those that follow the top-down and bottom-up approaches. The two approaches have similar objective with respect to environmental protection and sustainability. However, the success with which each approach achieves goals of environmental protection and sustainability may vary. Moreover, the costs and benefits of each approach differ. The present study will explore the implication of environmental regulation to sustainability, costs associated with regulations, and alternatives with respect to using mixes of market-based instruments. The study will review top-down and bottom-up environmental regulations with the objective of identifying weakness and strength of each approach. Furthermore, the study will make recommendations on possible strategies (e.g., mixes of regulatory instruments) that will contribute toward the attainment of sustainable environment, and by implication to sustainable development.