PUMA work on alternatives to traditional regulation aims to increase understanding of the potential benefits of alternatives by publishing both case studies of the use of different options in a range of contexts and more theoretical material seeking to identify general characteristics of different alternatives and principles for their use. The PUMA work is looking at a wide range of alternatives. Alternatives can include both different forms of regulation and non-regulatory approaches. This can provide greater flexibility for firms to meet requirements at lower cost. Process regulation .
Many risks are extremely difficult and costly to regulate via prescriptive controls.
The real effectiveness of regulation depends crucially on enforcement. New strategies are targeting inspection activity more effectively, while the contracting of this activity to third parties also holds the potential for efficiency gains. Non-regulatory approaches span an extremely broad spectrum and must be carefully matched with the policy questions under consideration. Tradeable property rights can be a mechanism for ensuring that necessary limitations on production or consumption are achieved at the lowest social cost. Examples of their use include pollution control, allocation of take-off and landing rights at airports and allocation of broadcast spectra.