The Governmental theory of the atonement (also known as the moral government theory) maintains that Christ was not punished on behalf of the human race. Instead, God publicly demonstrated his displeasure with sin by punishing his own sinless and obedient Son as a propitiation. Because Christ's suffering and death served as a substitute for the punishment humans might have received, God is able to extend forgiveness while maintaining divine order, having demonstrated the seriousness of sin and thus appeasing his wrath.
This [governmental atonement] view holds that Christ by His death actually paid the penalty for no man's sin. What His death did was to demonstrate what their sins deserved at the hand of the just Governor and Judge of the universe, and permits God justly to forgive men if on other grounds, such as their faith, their repentance, their works, and their perseverance, they meet His demand. ... But this is just to eviscerate the Savior's work of all its intrinsic saving worth and to replace the Christosoteric vision of Scripture with the autosoteric vision of Pelagianism.
—Robert Reymond, A New Systematic Theology of the Christian Faith (Thomas Nelson, 1998), p. 80