Performance standards specify a minimum requirement to address the market failures associated with high environmental performance, such as negative externalities and split-incentives, while leaving flexibility in the method of adherence. This regulatory instrument can be directly targeted at a range of environmental proxies; from consumption of particular inputs, to the emission of pollutants.
 OECD. 2011a. Tools For Delivering on Green Growth. Organisation for Economic Co-operation and Development. Available online via https://www.oecd.org/greengrowth/48012326.pdf