Do you agree with the statement? Why? The traditional domestic approach to environmental policy regulation is the command and control system where standards are created, perhaps for industrial emissions, and fines are levied for underperformance or non-compliance. Detractors cite this approach as costly, inflexible, and a deterrent to business. This approach has been supplanted by market-based approaches of incentivization through taxes and subsidies and the cap and trade system where emission allowances are permitted to be purchased for high emission outputs. While economically beneficial, in that poor compliance does not assure closure, this system of credits and offsets does not assure emission reductions