Harnessing third parties as surrogate regulators: achieving environmental outcomes by alternative means

The need to design innovative strategies alternative or complementary to that of government regulation is becoming increasingly apparent. This article examines one such innovation: to use both business and commercial entities and non-commercial third parties as surrogates for, or complements to, direct government regulation. This strategy will still involve government intervention, but selectively and in combination with a range of market solutions, and of public and private orderings. The contexts and circumstances in which third parties might be used as surrogate regulators are considered; the impediments to them acting in this role and the extent and circumstances in which they might be overcome are identified; and the roles that governments might play in facilitating, encouraging or otherwise ensuring that third parties do act successfully as surrogate regulators are examined. Copyright © 1999 John Wiley & Sons, Ltd and ERP Environment.