Performance standards mandate a specific outcome, giving regulated agents the freedom to choose technologies and processes to achieve the specified performance level. They include:
- Standards defined as a function of an output per unit of input. For example, energy efficiency regulations which mandate a minimum performance (e.g. hours of a working product per energy input such as brightness per hour per energy input, kilometres driven per fuel used, etc).
- Bans and phase outs: the instrument’s outcome mandate implies a complete prohibition of specific inputs or technologies altogether (e.g. a fuel economy standard with an intensity of 0gCO2/km).