Market-Based Regulation
/ˈmɑːrkɪt beɪst ˌrɛɡjʊˈleɪʃən/
Definitions
- (n.) A regulatory approach that uses market signals, financial incentives, or trading mechanisms to achieve policy objectives, often in environmental law or economic regulation.
The government implemented a market-based regulation to reduce carbon emissions by allowing companies to trade emission permits.
Forms
- market-based regulation
Related terms
See also
Commentary
Often contrasted with command-and-control regulation, market-based regulation leverages economic incentives for compliance rather than prescriptive mandates.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.