Effects of Regulation/ Deregulation on Natural Resource Management for Market Efficiency, with Special Reference to Aggregates Mining

Abstract

Extraction or mining of geo-resources has created a much-complicated situation in terms of environmental, economic and social aspects. Currently, the depletion and the environmental damage done by this extraction have become core issues in Natural Resources Management. Regulation, thus, imposed to address the resource depletion and environmental damage has been widely considered as a main instrument to manage the Natural Resources. However, it (regulation) is frequently criticised stating that it has a little assistance in mitigating the damage done to the environment while distorting the market efficiency, affecting ultimately the overall economic growth. Yet, controversy between regulation and deregulation is highly debated over the decades. Consequently, with the objective of shedding insights on the effects of regulation and deregulation on natural resource management towards market efficiency, with special reference to aggregate (sand, gravel and metal) mining; this article offers a theoretical conceptualisation how effective it is. The article put forwards both the positive and negative aspects of regulation and deregulation, and via detailed discussion, concludes that regulation in mining of geo-resources is in favor of proper management of such, but detrimental to the efficiency of the resource market.