What do we mean by Alternatives to 
   Regulation?
   An  alternative  to  a  regulation  is  a  strategy,policy  or  process  of 
   inducing other ways of regulation other than the stringent rule of 
   law for incorporating regulatory procedures in the economic market.
   These  Alternatives  can  be,  market  based  instruments,  self-
   regulation  &  co-  regulation  policies  or  through  spreading 
   information & education schemes among the consumers & policy 
   makers in order to introduce more awareness on the regulations, so 
   the  acceptance  of  such  regulatory  process  is  easier  for  the 
   consumers.
   The  alternatives  to  regulation  should  be  incorporated  along  with 
   other  traditional  regulatory  framework,  as  they  provide  greater 
   flexibility  and  can  be  applied as per the market conditions of the 
   state and as per the relevant industry
   For  successful  application  of  the  alternative  regulation,  one  must 
   assess the market scenario first to analyse as to what may work & 
   what  may  not.These  alternatives  help  the  industry  to  break  the 
   common  norms  &  process  of  traditional  regulation  &  provides 
   flexible approach to regulation.
   Processes like Regulatory Impact Assessment can be carried out in 
   order to identify the advantages & disadvantages of the alternatives 
   in the relevant industry or market. Rather than following the general 
   create & regulate approach The alternatives to regulation are to be 
   incorporated during the policy making process itself and follows the 
   “regulate first” approach.
    Advantages of Alternatives to 
    Regulation
    ❖It is more Flexible than the traditional approach of Regulation.
    ❖Generally Easy to incorporate as current regulation can be improved 
     with the changes in policies.
    ❖Alternative regulation guides the policy makers in drafting efficient 
     policies.
    ❖It  helps  in  effective  decision  making  by  the  regulators  &  policy 
     makers.
    ❖It minimises the regulation costs.
    ❖It can be altered as per the Industry needs & requirements
    ❖The tradition form of regulation may not be successful with the ever-
     changing needs of the economy but alternatives to regulation can 
     help modify policies as per the changing needs of the markets.
    Barriers to Alternative Regulation
    ●Alternative regulation is considered risky as the application may 
     not always achieve the defined objectives.
    ●May not be easily acceptable by the consumers
    ●policy makers reluctant to use these alternatives because of the 
     unpredictability  &  perception  of  risks  involved  with  it,  which 
     further brings out fear in the consumers as well.
    ●avoidance  of  the  regulation  by  the  consumers  affects  its 
     applicability.
    ●fear of loss of control by the government.
    ●Lack of knowledge can cause adverse failure of the alternative 
     regulation.
    ●Resistance to change among policy makers & regulators
    ●lack  of  knowledge/awareness  in  policy  makers  on  use  of 
     alternative regulation.
    ●Public opinion may influence the decisions of the Regulators & 
     Policy makers.
    ●The results of the alternative regulators may not be seen in the 
     short term.
    ●Awareness on results outcome through the traditional regulation 
     provides comfort to the regulators hence restricting themselves 
     to choose other modes of regulation.
    ●It raises concerns for the businesses as to the impact of such 
     regulation  on  the  competitors  &  their  reactions  to  it,  which 
     makes  them  reluctant  to  show  acceptability  to  alternative 
     regulations.