Cited six reasons for government regulation, namely: to create pressure that motivates companies to innovate, to improve environmental quality in cases in which innovation and the resulting improvements in resource productivity do not completely offset the cost of compliance; or in which it takes time for learning effects to reduce the overall cost of innovative solutions, to alert and educate companies about likely resource inefficiencies and potential areas for technological improvement, to raise the likelihood that product innovations and process innovations in general will be environmentally friendly, to create demand for environmental improvement until companies and customers are able to perceive and measure the resource inefficiencies
