Incorporating discretionary power for regulated entities in the design of regulations
This policy brief provides an overview of how regulators can grant or limit discretion in regulations through various legislative techniques. It explains that discretion has three dimensions: goals, means, and organisational structures. It shows how different types of regulation limit or increase freedom along these dimensions. The policy note also demonstrates how regulators can modulate discretion by combining primary and secondary legislative techniques, creating hybrid forms of regulation that offer a balance between flexibility for the regulated actors and safeguards to ensure that policy objectives are achieved.