Gauging the Impact of Transparency Policies

To what extent do transparency policies generate positive impacts? This seemingly rhetorical question has become the subject of increasing contention, partly because of two research‐based biases. First, researchers have been blinded by metrics and method. Using tools that are often ill suited to gauging the gradual, diffuse, and indirect effects of most transparency policies, research has found—unsurprisingly—spotty evidence of impact. Transparency studies would benefit from greater use of complementary approaches, such as careful tracing of impact processes and indicators, combined with sensible counterfactual reasoning. Second, researchers have been looking for impact with blinkered vision. In particular, a thematic fixation on accountability and participation has monopolized attention. Key preconditions—such as compliance with and implementation of transparency policies—remain relatively neglected, as do other areas of potential impact, including capacity building, how actors are leveraging previously restricted streams of information, and transparency's role in improving policy coordination and communication.     

Voluntary Regulations and Innovation: The Case of ISO 14001

Governments enact environmental regulations to compel firms to internalize pollution externalities. Critics contend that regulations encourage technological lock‐ins and stifle innovation. Challenging this view, the Porter‐Linde hypothesis suggests that appropriately designed regulations can spur innovation because (1) pollution reflects resource waste; (2) regulations focus firms’ attention on waste; and (3) with regulation‐induced focus, firms are incentivized to innovate to reduce waste. This article explores the regulation–innovation linkage in the context of voluntary regulations. The authors focus on ISO 14001, the most widely adopted voluntary environmental program in the world. Examining a panel of 79 countries for the period 1996–2009, they find that country‐level ISO 14001 participation is a significant predictor of a country's environmental patent applications, a standard proxy for innovation activity. The policy implication is that public managers should consider voluntary regulation's second‐order effects on innovation, beyond their first‐order effects on pollution and regulatory compliance.     

Covenants with weak swords: ISO 14001 and facilities' environmental performance

Voluntary environmental programs are codes of progressive environmental conduct that firms pledge to adopt. This paper investigates whether ISO 14001, a voluntary program with a weak sword—a weak monitoring and sanctioning mechanism—can mitigate shirking and improve participants' environmental performance. Sponsored by the International Organization for Standardization (ISO), ISO 14001 is the most widely adopted voluntary environmental program in the world. Our analysis of over 3,000 facilities regulated as major sources under the U.S. Clean Air Act suggests that ISO 14001‐certified facilities reduce their pollution emissions more than non‐certified facilities. This result persists even after controlling for facilities' emission and regulatory compliance histories as well as addressing potential endogeneity issues between facilities' environmental performance and their decisions to join ISO 14001. © 2005 by the Association for Public Policy Analysis and Management     

Canada's voluntary ARET program: Limited success despite industry cosponsorship

The Accelerated Reduction/Elimination of Toxins (ARET) Challenge was a voluntary program initiated in 1994 by the Government of Canada. Unlike the U.S. 33/50 Program, ARET involved industry partners in negotiation and cosponsorship of the program, with the intention that early involvement would yield stronger commitment to voluntary reductions. We review the program's self‐reported success in delivering emissions reductions. For 17 ARET substances that were also covered by Canada's National Pollutant Release Inventory, we employ treatment effects regressions to control for self‐selection bias. We find evidence that ARET accelerated emission reductions in five cases, slowed reductions in two cases, and had no discernible effect in ten cases. Industry cosponsorship apparently did not have the intended effect and instead resulted in program features such as data confidentiality that significantly undermined the program's credibility. © 2007 by the Association for Public Policy Analysis and Management     

Focal Points in Public Policy: Evidence from Voluntary Regulation

Numerous studies argue that law affects behavior “expressively”—such as when states create focal points that overcome the coordination difficulties firms face. We argue that governments help firms overcome coordination dilemmas by explicating a preferred strategy for firms weighing investment in voluntary regulation. Firms would prefer to coordinate on a common strategy as a way of reducing the costs of voluntary regulation and increasing its benefits. We test our hypothesis about the efficacy of focal point selection with the European Union's (EU) advocacy of the Eco‐Management and Audit Scheme (EMAS) over a rival environmental management system, International Standards Organization (ISO) 14001. EU nations have statistically significantly lower rates of ISO 14001 certification than comparable countries at least in part due to their advocacy of EMAS. These results emphasize the role the state plays in coordinating business behavior even when such policy is simply expressive.     

Problems,politics, and policy streams in policy implementation

We apply Kingdon's multiple streams framework (MSF) to policy implementation to reflect a nested process separate from but interdependent with policymaking. Then, we generate a hypothesis concerning the conditional nature of problems, policies, and politics stream impacts on policy implementation. We test our hypotheses with state‐level implementation of the Clean Air Act, Clean Water Act, and Resource Conservation and Recovery Act, using a pooled data set of 10 years of toxic releases data. Findings suggest an important interaction occurs among problems, policies, and politics during the policy implementation process. More specifically, when any of the three is held at median levels, only marginal differences in outputs occur; however, when all three are increased to extreme levels, substantive differences emerge. Conclusions connect policy implementation to larger issues of MSF theoretical development and suggest implications for governance.     

The What,Where, and When of Place-Based Housing Policy’s Neighborhood Effects

Ever-scarce affordable housing production resources, in addition to their primary function of providing housing for those in need, are increasingly enlisted for the dual goals of strengthening distressed communities and increasing access to higher opportunity neighborhoods. Information on spillovers can inform investment decisions over time and across communities. We leverage recent, high-quality research on neighborhood effects of Low-Income Housing Tax Credit (LIHTC) production, synthesizing evidence according to neighborhood context. We also summarize the evidence on project features moderating impacts of publicly subsidized, place-based rental housing, in general. We conclude that context matters. Producing LIHTC housing in distressed neighborhoods positively impacts the surrounding neighborhood—in terms of modest property value gains and increased safety. By contrast, higher opportunity neighborhoods experience small property value reductions, and no impacts on crime. Big questions remain, however, about impact heterogeneity—via tenant mix, property design, and ongoing property management, as examples—with the scarcity of systematic data representing one of the field’s largest constraints.     

Market incentives to encourage household waste recycling: Paying for what you throw away

This article investigates the use of market incentives to encourage household waste recycling by pricing waste-disposal services according to the quantity of waste generated. We use a natural experiment from an upstate New York county to examine how quantity-based pricing of waste disposal affects reported household recycling behavior, when used by itself or in conjunction with curbside pickup of recyclables or mandatory recycling laws. Curbside pickup was found to have the greatest effect on reported recycling behavior, although higher waste-disposal prices might alter these conclusions. Other concerns about quantity-based pricing of solid waste—distributional effects, public acceptance, and adverse incentives—are also examined.     

Intergovernmental Structure and Fiscal Management Strategies: A Crossnational Analysis

Does intergovernmental structure have a systematic effect on the impacts of local governments' fiscal policy responses? Using empirical data from more than 800 local governments in five countries, the article concludes that intergovernmental structure is associated with the impact attributed to various fiscal management strategies. Such strategies have generally had greater impact in local governments in federal systems than those in unitary state systems. There are similarities between federal and unitary local governments regarding the fiscal management strategies that have least impact, and both types stress the importance of productivity gains via technology. But the differences in relative importance and level of impact are more striking than the similarities. In particular, fiscal management strategies involving the relations of the local government with other governments, such as obtaining intergovernmental revenue and shifting service provision to other governments, have greater impact in significantly more federal systems than in unitary state systems. These federal local governments also experience greater impacts from increasing user charges and raising local taxes. In contrast, local governments in unitary state systems place greater reliance on the more politically expeditious strategy of across–the–board expenditure reductions and on reductions of capital spending. These findings suggest that local governments in more decentralized systems have greater flexibility to manipulate relations with other governments in order to enhance their own fiscal situation. The data also suggest that the government's level of fiscal stress is not systematically associated with the level of impact from most fiscal management strategies, especially in the unitary state systems.     

New York city and subsidized housing: Impacts and lessons of the city's $5 billion capital budget housing plan

Abstract

New York City has devoted far more resources to the development and rehabilitation of affordable housing than any other U.S. city, investing more than $4 billion from 1986 to 1997. This article surveys the impact, status, and implications of New York's housing programs. It looks at correlations between publicly funded housing starts and changes in the housing stock, welfare rolls, and crime and at the economic impact of the city's housing investments within low‐income neighborhoods.

New York's housing programs have transformed neighborhoods, replacing large swaths of abandoned shells and vacant land with new housing and preserving thousands of buildings at risk of abandonment. While these housing investments correlate most strongly with reductions in vacant units and vacant lots, they also show significant correlations with reductions in welfare rolls and violent crime, but uneven economic impacts as well. New York's housing programs are important nationally less for the specifics of particular programs than for the institutional collaborations on which they are founded.     

Fair siting procedures: An empirical analysis of their importance and characteristics

This article analyzes the reasons why individuals oppose the siting of nuclear waste repositories close to their hometowns. In a simple model based on survey data, we show that the willingness to accept such facilities largely depends on economic criteria, namely expected economic impacts and risk estimates. However, the predictive power of such a model is improved by focusing not only on the consequences—as economic models typically do—but also on the procedural aspects. We show that acceptable siting rules contribute positively to the willingness of local residents to host a noxious facility. Acceptable rules, it is found, are essentially fair rules.     

Condemning corruption while condoning inefficiency: an experimental investigation into voting behavior

This article reports results from an economic experiment that investigates the extent to which voters punish corruption and waste in elections. While both are responsible for reductions in voters’ welfare, they are not necessarily perceived as equally immoral. The empirical literature in political agency has not yet dealt with these two dimensions of voters’ choice calculus. Our results suggest that morality and norms are indeed crucial for a superior voting equilibrium in systems with heterogeneous politicians: while corruption always is punished, self-interest alone—in the absence of norms—leads to the acceptance and perpetuation of waste and social losses.     

Driving less for better air: Impacts of a public information campaign

In the wake of the 1990 amendments to the Clean Air Act, localities across the United States initiated public information campaigns both to raise awareness of threats to air quality and to change behavior related to air pollution by recommending specific behavioral changes in the campaign messages. These campaigns are designed to reduce the health hazards associated with poor air quality and to avoid federal sanctions resulting from the failure to meet air quality standards. As in many other communities across the country, a coalition of government agencies and businesses initiated a public information campaign in the Atlanta metropolitan region to reduce certain targeted behaviors, mainly driving. A two‐stage model used to analyze data from a rolling sample survey shows that the centerpiece of the information campaign—air quality alerts—was effective in raising awareness and reducing driving in a segment of the population. When the overall information campaign was moderated by employers' participation in programs to improve air quality, drivers significantly reduced the number of miles they drove and the number of trips they took by car on days when air quality alerts were sounded. Public information campaigns can be successful in increasing awareness, but changing well‐established behaviors, such as driving, is likely to require institutional mediation to provide social contexts that support the behavioral change, as well. © 2003 by the Association for Public Policy Analysis and Management.     

How Voluntary Environmental Programs Reduce Pollution

This article investigates the mechanisms that voluntary environmental program (VEP) participants adopt to reduce pollution. The focus of this article is the 33/50 program, a VEP introduced by the U.S. Environmental Protection Agency in 1991 and discontinued in 1995. The program called for emissions reductions for 17 chemicals reported to the Toxics Release Inventory. Using a sample of approximately 12,000 plants, the relationship between 33/50 program participation and adoption of pollution reduction practices is studied for three time periods, 1991–1995 (program life), 1996–2004, and 2005–2013. These practices include source reduction activities (SRAs) and recycling, recovery, and treatment (RRTs). The major findings are that during the program's life, 33/50 participants showed increased adoption of SRAs and RRTs for both targeted and nontargeted chemicals. However, once the program ended, higher adoption rates persisted for RRTs only, with a shift in emphasis toward treatment over recycling and recovery.     

Euvoluntariness and just market exchange: moral dilemmas from Locke’s Venditio

It is a maxim of Public Choice that voluntary exchanges should not be interfered with by the state. But what makes a voluntary market exchange truly voluntary? We suggest, contra much of the economics literature, that voluntary exchange requires consent uncoerced by threats of harm, but that this is not sufficient. In particular, a person pressured to exchange by the dire consequences of failing to exchange—e.g., dying of thirst or hunger—is still coerced, and coerced exchange cannot be voluntary. The weaker party’s desperation gives the other party unconscionable bargaining power. We argue for a distinction, based on a neologism: in the case of coercion by circumstance but not by threat, exchange is still voluntary in the conventional sense, but it is not euvoluntary (i.e., truly voluntary). We will argue that all euvoluntary exchanges are just, while non-euvoluntary exchanges may or may not be unjust; that in competitive markets all exchanges are just, even those that are not euvoluntary, while in bilateral monopolies some exchanges are neither euvoluntary nor just. We will propose a mental device, the “fictitious negotiation”, to determine the just price in non-euvoluntary market exchanges. A primitive version of these ideas can be found in a little known monograph by John Locke, which we will analyze in detail.     

State health reform: Effects on labor markets and economic activity

Individual states are actively weighing health care reform proposals and their potential impacts on many levels, including states' own economies. This article considers the effects on state economies of two instruments of health reform: employer mandates and cost containment. The literature suggests that an employer mandate will reduce employees' wages in the long run. In the short run, however, to compensate for the costs associated with mandated health care insurance for their employees, firms may raise their prices to consumers, reduce the number of employees or allow a drop in profit margins. By increasing health care spending and the number of insured persons, mandates would also increase states' levels of economic activity. Though cost containment may dampen the stimulative effects of expanded coverage, resources not spent on health care as a result of effective cost containment might be redistributed to other sectors in a state's economy.     

Top‐Down Self‐Organization: State Logics,Substitutional Delegation,and Private Governance in Russia

This study investigates the counterintuitive emergence of self‐regulation in the Russian construction sector. Despite its proclivity for centralizing political authority, the government acted as the catalyst for the delegation of regulatory powers to private industry groups. The article argues that a factor little considered in extant literature—namely, a weak and corrupt bureaucracy—is key to explaining why the normally control‐oriented executive branch began to promote private governance despite industry's preference for continued state regulation. The article's signal contribution is to theoretically explain and empirically demonstrate how a government's prior inability to establish intrastate control over an ineffective and bribable public bureaucracy creates incentives for political authorities to search for alternative means for policy implementation outside of existing state agencies. These findings are important for understanding the impetus and logic behind particular regulatory shifts in countries where the state apparatus is both deficient and corrupt.     

Information disclosure policy: Do state data processing efforts help more than the information disclosure itself?

The Toxics Release Inventory (TRI) was expected to reduce health risks stemming from emissions of hazardous chemicals by increasing public pressure on polluters. However, raw TRI data fails to transmit accurate information fitted to the public's interest. TRI is a massive and complex data set that, in its raw form, provides information on the pounds of toxics released, rather than the risks these releases pose to human health, which is the true quantity of interest. Consequently, raw TRI data needs to be refined and interpreted in terms of health risks by its users, which requires analytical sophistication and substantial data processing. State governments have attempted to increase of the usefulness of the TRI to the general public via two types of policies: (1) selection and dissemination of raw TRI data for plants within the state, and (2) data processing activities producing more refined reports and further data analysis. This study assesses the effectiveness of those two policies, asking how much each contributes to the intended policy outcome of reducing health risks. Our results show that state‐level data dissemination efforts lowered the total number of pounds of chemicals released, but had little effect on health risks. State‐level data processing efforts, in contrast, did lead to significant reductions in health risks. We conclude that simple dissemination of the data was ineffective (and even counterproductive in some instances), and that the states' data processing efforts have played a critical role in achieving the TRI's intended policy goal by providing better information to end users. © 2010 by the Association for Public Policy Analysis and Management.     

Municipal Rebate Programs for Environmental Retrofits: An Evaluation of Additionality and Cost‐Effectiveness

When policies incentivize voluntary activities that also take place in the absence of the incentive, it is critical to identify the additionality of the policy—that is, the degree to which the policy results in actions that would not have occurred otherwise. Rebate programs have become a common conservation policy tool for local municipalities seeking to retrofit residential properties with efficient appliances. This research evaluates whether such rebates can be cost‐effective means for water utilities to promote water conservation. A unique database is developed that combines water‐use data over a three‐year period for all households that participated in a utility's high‐efficiency toilet (HET) rebate program, water‐use data for a matched sample of neighbors who did not receive a rebate, and a survey of rebate participants. Difference‐in‐differences models indicate that installation of an HET reduces household water consumption by approximately 7 percent. While installation of an HET appears to be an effective means for achieving household reductions in water consumption, our results also suggest that the rebate program is a much less effective means for achieving household reductions in water consumption. Specifically, the rebate program is found to provide limited additional water savings beyond what would have occurred naturally and is responsible for only 37 percent of the total water reduction attributable to the installation of HETs over the study period. © 2013 by the Association for Public Policy Analysis and Management.     

Urban amenities,demand revelation,and the free-rider problem: A partial solution

This paper suggests a practical mechanism to mitigate problems of demand revelation and free riding that arise when efforts are made to create urban amenities such as parks or nature preserves through voluntary private purchase. Building on the work of earlier writers, the model provides a potential way to increase voluntary donations for local public goods, holding constant the incentive to free ride, while simultaneously introducing a mechanism — the refundable trust — that reduces the incentive to free ride. A case involving implementation of this mechanism is described.