16.4.2 Regulatory Environment
Environmental regulation and policies often play a significant role in creating
conditions for adopting certain technologies. Generally, environmental standards
based on "best available technologies" tend to perpetuate existing
control technologies at the expense of long-term innovation. This type of standard
setting results in regulations focusing on "end-of-pipe" type pollution
control technologies, and can create a strong disincentive for going beyond
the proven standards dictated by existing technologies (TERI, 1997).