Optimal Specificity in Environmental Standard-Setting

This paper discusses environmental standard-setting from an economic perspective. Special attention is paid to the way in which environmental standards should be set in federal systems. Basic economics of standard-setting is presented as well as the difference between ambient quality standards and emission standards. The relationship between cost-benefit analysis and standard-setting is explained. The way in which standard-setting is regulated in the (European) Directive on Integrated Pollution Prevention and Control (IPPC) is explained as well. Attention is paid to guidelines for standard-setting such as the requirement to use Best Available Technology (BAT)