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Some issues highlighted include<ref name="Baldwin"/>:
*[[Capture]]: The concern here is that the relationship between regulators and the regulated may lead to the interests of the public being neglected. In this situation it is possible for the relationship to become too close, leading to capture. This may result in the regulator protecting the interests of the regulated.
*[[Legalism]]: Command and control has been accused of stifling competition and enterprise. It has been posited that this is an inevitable consequence of the inflexible and complicated rules that can be created by the approach. Over-regulation can result, which in turn can lead to ‘over-inclusive’ regulation.
*[[Standard-setting]]: Selecting the appropriate standards when implementing a CAC regime is crucial if the regulation is to avoid causing detriment to those that it regulates. This is a challenging obstacle to overcome as the amount of information required can be severe.
*[[Enforcement]]: This constitutes a very significant dilemma for a CAC regulatory approach. One of the key issues is the expense of enforcement, especially when a complex system of rules has been developed. There are also problems of scope.
Critics of CAC often point to incentive based regulation as an alternative. Possible benefits of this approach may include cheaper administration costs and a reduction in the risk of regulatory capture. However the view that incentive-based regulation is radically different to CAC has been scrutinised. The advantages can be exaggerated, a complex system of rules is often necessary to allow an effective system, this can cause many incentive-based schemes to appear to replicate some of the characteristics of CAC. Inspection and enforcement may also be essential to prevent evasion of liability, again resembling CAC and possibly removing the posited benefits in terms of cost.<ref name="Baldwin"/>While pratices may be changed at a superfical level through the use of CAC, it may not be able to achieve the changes of behaviour necessary for more sustainable environmental practices.<ref name="gandg"> Gunningham, N., Grabosky, P. (1998) Smart Regulation: Designing Environmental Policy. USA: Oxford University Press.</ref>
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