Environmental regulation of trades by fixed standards: The Danish experience

Summary In 1986, the Danish Environmental Protection Agency established a new regulatory system aimed at small-scale polluting activities. Contrary to the dominant regulatory system based on individual standards for each polluting activity, the new regulatory system established uniform and fixed environmental standards for all activities within a trade. The fixed standards concern location, design and daily operation. Thus far, the new regulatory system has been implemented in the trades of fur farms and auto-repair shops.This study shows that fixed environmental standards reduce the total administrative costs, intensify local monitoring and enforcement of the standards, and improve the environmental state. It is proposed that the following criteria should be considered if the regulatory system is to be implemented in other trades. The trade should consist of many units and be characterised by a moderate pace of technological development, it should posses well-defined and well-known environmental problems, and have a cooperative trade association. In Denmark several trades have been identified as obvious objects for future regulation by fixed environmental standards.Bente Kjærgård is a Research Associate in the Department of Environment, Technology and Social Studies at Roskilde University. Correspondence should be addressed to this author. The other authors are Associate Professors in the same Department. Each author possesses a research degree as follows: Per Homann Jespersen in Chemical Engineering, Henning Schroll in Biology, Jesper Holm in Technological Planning, and Bente Kjærgård in Environmental Planning.