Markets vs. Mandates: Session 1: Thinking Clearly about Markets and Mandates | Hoover Institution

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Presenters: Terry Anderson, John and Jean De Nault Senior Fellow, Hoover Institution; and Dominic Parker, Ilene and Morton Harris Visiting Fellow, Hoover Institution.

Terry Anderson began the conference sessions by providing definitions for mandates and markets in their environmental contexts. Mandates (or rules) means that politics and administrations assign environmental objectives and use fixed command-and-control mechanisms to achieve them. On the other hand, markets are based on processes whereby resource owners respond to changing values.

Dominic Parker examined the trade-offs of both market-driven and mandate approaches to environmental policies. He explained that there are cases in which mandates have proved effective, but that their policy outcomes should be analyzed with a nuanced perspective.

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