Green Markets: Environmental Regulation by the Private Sector*

Abstract

The article begins with a review of recent trends in the devolution of state functions to nongovernment institutions, and discusses how private interests may be enlisted in furtherance of public policy. It then outlines a variety of institutions and instruments which might comprise a system of regulation for environmental protection, and suggests some of the forms of interaction between them. The focus then turns to commercial activity which can further the interests of environmental protection. It summarizes eight emerging trends in “green commerce” and concludes that in some settings, the constructive influence of commercial forces can exceed that wielded by government agencies.