Social Regulation

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Social Regulation
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What do we mean by social regulation?

• Agencies were tasked with providing "personal
  protection against physical hazards of modern
  industry and technology, and moral hazards of
  discrimination."
• Agencies such as OSHA and EPA have caused a lot
  of discussion about the extent of regulation.
  Demonstrates adversarial relationships between
  industry and regulators.

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Scope and Growth

• Home safety - CPSC (crib manufacturing)
• Road safety - NHTSA (seat belts)
• Workplace safety -- OSHA standards
• Environmental safety in water and air
• Nuclear Power safety -- NRC, EPA, and DOE.
• Resource/Aesthetic protection -- endangered
  species and visibility
• Prevention of Discrimination
• Morality or Social Conduct

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Different than Econ. Regulation

• Increased competition will not solve problem.
  Externalities not monopoly problems. More
  competition may increase the problems.
• Regulation, in most cases, tends not to focus on
  one industry but multiple industries.
• Congress typically provides jurisdiction to
  hierarchy in the executive branch and not in an
  IRC.

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Diff. than Econ. Reg. (cont)

• Complexity of developing policies
• Increased citizen participation through various
  mechanisms especially lawsuits. Political
  environment more diverse and complex.
• Some amount of specificity in legislation
• Greater role for states especially in
  implementation.

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Diff. than Econ. Reg. (cont)

• Greater conflict. More firms affected by an
  agency action with greater costs involved.
  Social regulation rarely established with the
  approval of industry involved.
• Public seems more committed to social regulation.