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Box 49 Conventional Approach to Regulation



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Positive Development From Vicious Circles to V

Box 49 Conventional Approach to Regulation
Construction 
industry
Society ‘demand’
Industrial ‘supply’
Cheap resources 
and energy
Consumption
Apply ‘grease’ 
to increase 
production and 
consumption
Industrial society aims to increase 
supply and demand
In this conventional world view, it would 
appear that industry would benefit if:
• 
Access to natural resource, transport 
and labour were cheaper and/or
• 
There were more consumers and/or 
more consumption per capita
Therefore, policies have sought to increase 
access to resources and consumption.
Sometimes there are efforts to increase 
demand to balance supply. This results 
in increased throughput of materials and 
energy over time and is unsustainable.
Cheap
transport
Consumers
Construction 
industry
Society ‘demand’
Industrial ‘supply’
Cheap resources 
and energy
Consumption
Apply brakes or 
friction to slow 
production and 
consumption
Cheap
transport
Consumers
Environmental regulation aims to 
reduce supply and demand
When environmentalists and policymak-
ers became aware of environmental 
issues, they tried to reduce these drivers 
by creating friction on consumption and 
production. Thus environmental regula
-
tion was shaped by the same (unsustain-
able) paradigmatic approach. Given this 
industrial framework, environmental 
controls try to reduce or tax:
• 
Inputs
(resource extraction); or
• 
Outputs
(pollution and waste) of 
industry; or
• 
Consumption
by consumers
These environmental controls displease 
both industry and consumers, because 
they constrain supply and/or demand. This 
inevitably leads to ever more conflict. 
Construction 
industry
Society ‘demand’
Industrial ‘supply’
Eco-Retrofitting 
can, for example, 
increase ‘effective’ 
production and 
consumption of 
life quality
Public
low-carbon
transport
Green resources and 
renewable energy
Better life
quality
Healthier 
consumers (GPI)

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