I'm asking questions to learn something from the discussion. Currently, my opinion is that regulations are necessary, but perhaps they aren't, and I would like to hear why.
> Think of it as an algorithmic problem - local optimization seldom leads to a global optimum. Hence, sometimes global tweaks can benefit an entire system.
To me, this sounds as if the power of the government needs to be huge and centralized? Because obviously local agents cannot come up with globally optimal solution (if the problem is not structured in a way they can).
For example, the huge use of insecticides and pesticides enables the industry of cheap meat and dairy. Regularizing insecticides and pesticides will most definitely increase the costs for the producers and the price of the product will increase. On the other hand, there are enormous subsidies in farming and will these subsidies now increase to keep the prices low?
These regulations, at least that's how it looks to me, are directly impacting the tax payer, not the industry players.
EDIT: I'm out of discussion. Getting to many downvotes for no particular reason.