Trust but verify: innovation in compliance monitoring as a response to the privatization of utilities in developed nations.

Social resistance to deregulation of the energy industry in the industrial nations can be overcome by implementing privatized compliance monitoring methods. A deposit-refund pollution control model is a cost-effective incremental way to privatize enforcement by placing compliance burdens on emitters rather than on regulators. Private compliance monitoring can help address issues such as potential environmental damage, regulatory bureaucracy, and lack of funding.