Do speed cameras produce net benefits? Evidence from British Columbia,Canada

Traffic collisions kill about 43,000 Americans a year. Worldwide, road traffic injuries are the leading cause of death by injury and the ninth leading cause of all deaths. Photo Radar speed enforcement has been implemented in the United States and many other industrialized countries, yet its cost‐effectiveness from a societal viewpoint, taking all significant impacts into account, has not been reported. This paper fills this gap, reporting on a Photo Radar traffic safety program introduced in 1996 in British Columbia, Canada, and incorporating the results of rigorous statistical analyses on speed and crash impacts into a comprehensive cost‐benefit analysis from both societal and sponsoring‐agency perspectives. The study reveals that the Rhoto Radar Program cost C$27 million per year in 2001 Canadian dollars (?US$21 million) and generated benefits valued at $142 million per year (?US$109 million), for net societal benefits of C$115 million per year (?US$88 million). It was estimated that the sponsoring agency saved C$38 million (?US$29 million) annually in claim costs. These results are robust to plausible alternate assumptions. Societal net benefits become negative only if the reduction in injuries and fatalities is one standard error below the expected value, or if private travel time is valued at or above C$15 per hour. Agency claim cost savings are greater than program costs under all scenarios tested. These results are likely applicable to jurisdictions in developed countries with similar traffic infrastructure: Greater use of highway photo radar speed enforcement would be good public policy. © 2006 by the Association for Public Policy Analysis and Management     

When industrial policy shapes public sector reform: Total quality management in Britain and France

Approaches seeking to explain the development of TQM ideas in government are very much ‘business‐centric’. The goal of this article is to show that in reforming the public sector, policy‐makers did not simply follow the lead of the private sector because ‐ in the case of TQM ‐ the private sector was itself, to some extent at least, led by government. In the mid‐1980s, Britain and France launched nationwide ‘quality initiatives’ which provided money for businesses to buy management consulting expertise. Through the implementation of these policies, consultants built channels of communication with the state, and this subsequently opened possibilities for consultants to help transfer TQM ideas from the industrial policy area to the field of public sector reform.     

Community engagement and public administration: Of silos,overlays and technologies of government

The public policy process in Australia is changing towards a more interactive, collaborative model, where governments seek to develop partnerships with civil society and private sector organisations to manage complex policy challenges. This article discusses research conducted into a project implemented by a Victorian government department that sought to involve stakeholders in addressing natural resource management issues in the agricultural sector. The research revealed that public administration practices associated with the new public management approach impeded the ability of the project to facilitate participation by diverse stakeholders in the decision‐making process. The article challenges the view that the discourse of collaboration and community engagement takes public administration down a constructivist path and suggests that agencies need to become reflexive about the way in which public administration practices are constitutive of the community engagement process if they are to facilitate genuine participation of other stakeholders.     

Are Green Vehicles Worth the Extra Cost? The Case of Diesel‐Electric Hybrid Technology for Urban Delivery Vehicles

A central question for environmental policy is whether the long‐term benefits of energy‐saving technologies are sufficient to justify their short‐term costs, and if so, whether financial incentives are needed to stimulate adoption. The fiscal effects of incentivizing new technologies, and the revenue effects of using the technology, are also policy relevant, given current fiscal constraints. This study evaluates the economic and fiscal effects of promoting diesel‐electric hybrid technology in urban delivery vehicles, an application supported by U.S. policymakers. An economic model is used to simulate the conditional probability density functions of the net present values (NPVs) of diesel electric hybrids annually from 2012 to 2030. The NPV time paths, which reflect fuel price, environmental, and technology trends, show the expected dates that hybrids become economically viable, and allow an evaluation of the net benefits of hybrid technology as an investment over the entire simulation horizon. The NPV distributions are computed for five stakeholder classes, including transportation firms, parties benefiting from reduced externality damages, state and local governments, and the larger society. The analysis shows that hybrid technology investment does not appear to be justified from a societal perspective at a 7 percent discount rate, but the probability for positive net returns increases substantially at a 3 percent rate.     

The Evolution and Continuing Challenges of E‐Governance

E‐governance comprises the use of information and communication technologies (ICTs) to support public services, government administration, democratic processes, and relationships among citizens, civil society, the private sector, and the state. Developed over more than two decades of technology innovation and policy response, the evolution of e‐governance is examined in terms of five interrelated objectives: a policy framework, enhanced public services, high‐quality and cost‐effective government operations, citizen engagement in democratic processes, and administrative and institutional reform. This summary assessment of e‐governance in U.S. states and local governments shows that the greatest investment and progress have been made in enhanced public services and improved government operations. Policy development has moved forward on several fronts, but new policy issues continually add to an increasingly complex set of concerns. The least progress appears to have occurred in enhancing democracy and exploring the implications of e‐governance for administrative and institutional reform. ICT‐enabled governance will continue to evolve for the foreseeable future providing a dynamic environment for ongoing learning and action.     

The Era of State Energy Policy Innovation: A Review of Policy Instruments

U.S. energy and climate policy has evolved from the bottom‐up, led by state governments, and internationally recognized for the use of unconventional and innovative policy instruments. This study focuses on policy instruments adopted throughout the era of state energy policy innovation that aim to diversify, decentralize, and decarbonize the electricity sector. Specific attention is devoted to the renewable portfolio standard, net metering, interconnection standards, tax incentives, public benefit funds, and energy efficiency resource standards. This analysis synthesizes the findings from the energy policy literature and provides a summary of the current state of understanding about the effects of various state energy policy instruments, and concludes with a discussion of broader trends that have emerged from the use of policy instruments in the state energy policy innovation era.     

Why does government produce national defense?

Economists argue that government produces national defense because it is a public good, and markets fail to produce public goods optimally. This argument has two shortcomings. First, it relies on different assumptions of individual behavior in the private and public sectors. Second, it assumes that government has a comparative advantage in the production of public goods, despite evidence to the contrary. Employing the standard assumption of self-interested behavior for both private sector and public sector individuals, government has an incentive to produce national defense because by doing so it is protecting its source of income: its tax base. Incidentally, citizens benefit from the exchange of protection for tribute because their assets are protected.     

Policy directions concerning racial discrimination in U.S. housing markets

Abstract

This paper presents a catalog of 34 different proposed research and direct action policies aimed at futhering the two basic goals of public antidiscrimination policies: (1) ending unequal treatment of households in housing transactions because of their race or ethnicity, and (2) counteracting existing racial residential segregation by promoting stable racial integration. These 34 proposals have been derived from the many papers in this volume, plus a few suggestions by the author.

Each proposal is evaluated against five specific criteria of desirability: potential effectiveness, government costs, private‐sector costs, ease of implementation, and political feasibility. A final overall evaluation of each is made, and all policies are divided into three priority categories: high, moderate, and low. Many recommended policies are synergistic. This whole effort should have very high overall priority in American social policy.     

Privately informed seekers of an uncertain rent

Two departures from antecedent rent-seeking models are invoked: a rent of unknown size is sought, and rent seekers obtain private imperfect estimates of this size. A symmetric equilibrium for a fixed number of rent seekers is characterized, and shown to underdissipate the rent. Then a model of the decision to obtain private information and participate in the rent-seeking contest is built. The symmetric equilibrium participation probability equates expected profit to participation costs. A simple formula for underdissipation results: dissipation is incomplete precisely by the expected aggregate participation costs. If an award mechanism can attain a lower level of dissipation for a fixed number of seekers, then it will raise the endogenous probability of participation, and as a result will dissipate less rent in the equilibrium with an endogenous number of seekers.     

An Evaluation of Private Sector Provision of Public Infrastructure in Australian Local Government

Private sector provision of public infrastructure in Australia at all levels of government, including local government, has steadily increased over the past twenty years. Nevertheless, this method of providing public infrastructure remains controversial. This article seeks to provide a critical review of the arguments surrounding private sector provision of infrastructure in Australian local government. It examines both the case for private sector provision of municipal infrastructure in Australia and the major arguments advanced against this approach to infrastructure development. Given the conceptual argumentation and empirical evidence on private municipal infrastructure provision, it is argued that policy makers should employ a nuanced performance evaluation framework to assess the benefits and weaknesses of private provision on the basis of the specific type of infrastructure in question and the kind of services it provides rather than simply endorse carte blanche privatization.     

Current practices for procuring affordable housing: The Canadian context

Abstract

This article describes the current housing system in Canada, focusing particularly on the various mechanisms still available for providing affordable housing. Beginning with an overview of the Canadian housing system, it provides a brief history of Canadian housing policy and program initiatives instrumental in developing the inventory of affordable housing available today.

Current practices and procedures in private lending for affordable housing are highlighted. A discussion of current initiatives available to provide affordable housing follows, with a focus on the role of government, the third sector, and new partnership arrangements implemented to encourage more affordable housing. The conclusion highlights recent changes, the current state of the affordable housing sector, and the impact these changes may have on low‐ and moderate‐income households in Canada.     

TRANSLATING THE PROBLEMS OF THE ELDERLY INTO EFFECTIVE POLICIES: AN ANALYSIS OF FILIAL ATTITUDES

This paper examines the political implications of current decision making efforts that underpin recent cost-cutting measures of federally supported programs serving the elderly. Current policy changes that favor the private sector (e.g., shifts of the cost of care to other levels of government and to elderly individuals and their families) have also generated a renewed interest in the policy of mandating family responsibility. The paper also examines attitudes concerning filial responsibility, such as multigenerational living. The inadequacy of current policy analysis that has encouraged the disestablishment of the current long-term care system and the shifting of care costs to the private sector, especially to the individual and the family are also examined.     

BUREAUCRATS AS PURCHASERS OF HEALTH SERVICES: LIMITATIONS OF THE PUBLIC SECTOR FOR CONTRACTING

Contracting out of health services increasingly involves a new role for governments as purchasers of services. To date, emphasis has been on contractual outcomes and the contracting process, which may benefit from improvements in developing countries, has been understudied. This article uses evidence from wide scale NGO contracting in Pakistan and examines the performance of government purchasers in managing the contracting process; draws comparisons with NGO managed contracting; and identifies purchaser skills needed for contracting NGOs. We found that the contracting process is complex and government purchasers struggled to manage the contracting process despite the provision of well‐designed contracts and guidelines. Weaknesses were seen in three areas: (i) poor capacity for managing tendering; (ii) weak public sector governance resulting in slow processes, low interest and rent seeking pressures; and (iii) mistrust between government and the NGO sector. In comparison parallel contracting ventures managed by large NGOs generally resulted in faster implementation, closer contractual relationships, drew wider participation of NGOs and often provided technical support. Our findings do not dilute the importance of government in contracting but front the case for an independent purchasing agency, for example an experienced NGO, to manage public sector contracts for community based services with the government role instead being one of larger oversight. Copyright © 2011 John Wiley & Sons, Ltd.     

The Future of Public Sector Pensions

The dramatic rise in life expectancy and longer retirement has created serious concerns about the long‐term affordability of public sector pensions. Drawing on insights from a recent inquiry into public sector pension reform, commissioned by the Conservative–Liberal Democrat Coalition and led by the author, this article outlines the challenge faced by policy makers and sets out how it should be addressed. It argues that, with 12 million people active in this part of the pensions system, and estimates that the gap between contributions and payments will grow from £3bn to £10bn in the next decade, the government has no choice but to enter the ‘lions’ den’ of pensions’ policy. It contends that any long‐term solution is to be crafted cannot be based solely on economics, but must also answer fundamental questions of ethics and equity.     

Public Sector Labor Relations Scholarship: Is There a “There,” There?

Public sector union membership is thriving compared to the private sector. Moreover, public employee unions play a significant role in policy making at every level of government. Yet research on public sector labor relations is sporadic and uneven, perhaps negligible. Why so? This article surveys the literature on public sector unionism and seeks to answer that question. Its conclusion points to a course of action for renewing interest in this seminal field among public administration, management, and policy scholars.     

Purchasing Policy Advice: The Limits to Contracting Out

Throughout the OECD, governments have been contracting out an increasing range of goods and services. Against this background, this article outlines the case for, and assesses the merits of, placing the purchase of governmental policy advice on a more competitive basis. Two options are given particular attention: first, the creation of an internal market for policy advice within the public sector under which departments and other government agencies would tender to supply specific policy outputs; and second, a more radical option under which public and private sector organizations would compete for the contracts to supply governmental policy advice. Drawing on the insights of the new institutional economics, it is argued that neither option is likely to enhance the efficiency or effectiveness with which policy advice is produced, whether under conditions of short-term or long-term contracting. This is due to the likelihood of: only partial contestability (due, among other things, to asset specificity in the form of transaction-specific expertise and trust); a greater risk of opportunistic behavior by the suppliers of advice (and also, under some conditions, by the purchasers); higher agency costs and transaction costs; and greater problems with respect to horizontal and vertical policy coordination. Such considerations suggest that the widespread reliance of governments on relatively permanent advisory institutions and in-house expertise can be explained and justified on the same theoretical grounds that have prompted the contracting out of other publicly-funded goods and services.     

“三渔问题”与公共政策调整思路——辽东湾海蜇捕捞案例分析

辽东湾海蜇捕捞案例反映出典型的以渔业资源枯竭,渔民生活困难,渔村经济薄弱为特征的"三渔问题".采用社会经济学原理和博弈论方法分析"资源公有 私人抢捕"(对应"公地悲剧 囚徒困境")的典型经济与社会问题,特别是海蜇捕捞冲突的机理与协调问题,探讨如何建立有效的社会协调机制,实现规范的公共管理.辽东湾海蜇捕捞违捕现象连年发生,已经形成了一种"动态稳定状态",说明海蜇捕捞这一公共管理事物出现了一定程度的市场失灵和一定程度的政府失灵现象.其中,产权问题是个核心问题.产权所有和使用可有四种基本组合:(1)资源公有 公共捕捞;(2)资源私有 私人捕捞;(3)资源公有 私人捕捞;(4)资源私有 公共捕捞.理论和现实都证明,第一种组合效率低下;第二种组合在不少国家为常态;第三种组合最容易出现"公地悲剧",这也是辽东湾的现实.但研究发现,海蜇资源具有较强的"竞争性"和"排他性",悲剧是可以避免的;第四种组合似乎没有可行性,但只要解决了"排他性"问题,很可能也是一种选择.     

Is private production of public services cheaper than public production? A meta‐regression analysis of solid waste and water services

Privatization of local government services is assumed to deliver cost savings, but empirical evidence for this from around the world is mixed. We conduct a meta‐regression analysis of all econometric studies examining privatization of water distribution and solid waste collection services and find no systematic support for lower costs with private production. Differences in study results are explained by differences in time period of the analyses, service characteristics, and policy environment. We do not find a genuine empirical effect of cost savings resulting from private production. The results suggest that to ensure cost savings, more attention be given to the cost characteristics of the service, the transaction costs involved, and the policy environment stimulating competition, rather than to the debate over public versus private delivery of these services. © 2010 by the Association for Public Policy Analysis and Management.     

Rent seekers who demand government production: Bureaucratic output and the price of complements

Many goods and services produced by government bureaus are sold at prices which do not maximize net revenues (maximize profits or minimize losses). Indeed, bureaucratic institutions typically create incentives to expand production beyond that which would maximize net revenues. Furthermore, many of the products sold by government bureaus are highly complementary to privately produced goods and services. If a bureau's output is not priced to maximize net revenues, then private sellers of various complements may be in a position to extract rents by adjusting their prices. This paper explores the implications of bureaucratically generated rents for privately produced complements. First, rent seeking can materialize when private sector interests apply pressure for expanded bureau production and lower bureau prices. Second, if the bureau does expand its production capacity beyond the net revenue maximizing level, and if a private producer obtains exclusive rights to supply complements, then the extraction of rents will result in an inefficient mix of resources in bureaucratic production. The basis of the inefficiency is not the reason often given, however. Rather, inefficiencies arise because the actual level of use is less than that which the ‘bureaucratic plant’ was constructed to produce due to the relatively high price of the complementary services.     

Madhya Pradesh Housing & Infrastructure Development Board: affordable housing via public–private partnership mode

The Madhya Pradesh Housing & Infrastructure Development Board (MPHIDB) is a state‐owned entity in Madhya Pradesh State of India with the mandate of providing housing for citizens, particularly for those in the low‐income segment. MPHIDB has been constructing houses on its own using the traditional engineering and procurement contract (EPC) model. In July 2015, it was exploring the possibility of creating affordable housing units via public–private partnership (PPP). The advantage of involving private sector is that MPHIDB can tap into creative energy and construction efficiency of the private sector and deliver the best results within the given set of time and resource constraints. The proposed structure of PPP is that the private partner will be given a portion of land in lieu of the affordable housing units that it will build and transfer to MPHIDB. However, there are trade‐offs involved in doing the project in PPP mode instead of EPC mode. The main advantages of a government body like MPHDIB doing the project on its own are as follows: (a) It is able to better manage regulatory risks in terms of getting clearances, land acquisition, and so forth; (b) it can raise finances at lower interest rates than what is charged for private sector entities; and (c) the entire land parcel is available to construct houses, and hence it can get more housing units per unit of land. The Commissioner (CEO) of MPHIDB had to decide whether to go for PPP or EPC model, and if he opted for PPP, how should the PPP be structured?