A COMPARISON OF THE EFFECTIVENESS OF INCENTIVES AND DIRECTIVES: THE CASE OF DUTCH WATER QUALITY POLICY

The use of effluent charges as an instrument o f regulatory policy has been the object of much dispute. The controversy between advocates and opponents of replacing directives by incentive strategies in various fields of public intervention has always been rather heated, though carried on more in terms of theory than of empirical evidence drawn from experience with policy instruments in actual operation. Much like permit trading in the United States, regulatory effluent charges in The Netherlands more or less "sneaked in through the back door." The Dutch system o f water quality charges had originally been designed to fulfill solely a revenue-raising function.
The unique features of The Netherlands system make it an interesting example of the use of charges. The Dutch system of effluent charges has been in operation since 1970 and, in terms of the level of the charges, is more than twice as large as the more recent German program. Furthermore its use as a regulatory instrument has been "accidental." It did not replace the official intervention strategy of direct regulation. Given this situation, the Dutch case provides a unique opportunity to examine the effects of these two approaches as they were applied to the same case.
Three statistical analyses of the impacts of the policy instrument used, supplemented by two expert assessments of these impacts, show the Dutch effluent charges have had a very remarkable effect on industrial polluters. In Holland, t h e water quality policy i s regarded as one of t h e few examples o f successful governmental intervention. The final section presents some general thoughts on relevance of the Dutch experience with effluent charges for other countries.     

Toward a positive theory of coalition formation and endogenous instrumental choice in global pollution control

The paper analyzes the coalition formation process in a global emission game with asymmetric countries where the number of signatories, the abatement target and the policy instrument are chosen simultaneously. Exemplarily, a uniform emission reduction quota and an effluent charge are considered. Stability is analyzed in a supergame framework by applying the concept of coalition-proofness. The analysis also considers the impact of impatient agents, restricted and simple punishment profiles. Two main results may be mentioned: First, paradoxically, IEAs achieve only little (if signed at all) if the externality problem is distinct. Second, our model helps to explain the frequent appearance of emission quotas in international pollution control despite the recommendations by economists to use market-based instruments like effluent charges.     

Transactions costs and the optimal instrument and intensity of air pollution control

Conclusions To what extent do the transactions costs of implementing alternative instruments for pollution control affect the choice of the optimal instrument and the efficient intensity of control under that instrument? In a comparison of Least-Cost Regulatory Standards and Revenue-Neutral Pigouvian Taxes, it is the higher transactions costs of implementing the taxes that make Pigouvian Taxes the more costly of the two instruments. However, a more practical comparison of instruments is between Politically Feasible Standards, Marketable Discharge Permits, and Revenue-Raising Pigouvian Taxes. Here, the relationship between the transactions costs of implementation and total pollution costs are in an almost linear inverse relationship. The lower the pollution costs associated with a particular instrument, and therefore the more desirable the instrument, the higher the transactions costs of implementation. Other factors such as political distortion and welfare gains prove to be more important than the transactions costs of implementation.Assuming that variable transactions costs decrease with the optimal level of pollution for regulatory standards but increase with the optimal level for market oriented instruments, an accounting of transactions costs results in less stringent control in the case of regulatory standards and more stringent control in the case of market oriented instruments. However, the percentage effect is very small. Moreover, it is smaller in both cases if marginal pollution damage rises with the level of pollution, as it is usually presumed to do, rather than remain constant as assumed in this paper for purposes of aggregation. A major conclusion of this paper is that Pigouvian Taxes are the superior instrument for pollution control when the raising of public revenues is a desired objective. However, the various conclusions of this paper should be viewed as tentative because the data on which they are based are no longer current. Moreover, the critical estimates of transactions costs are somewhat dubious. It is hoped that new data will be collected for answering the questions raised in this paper. When this is done, a more powerful approach, one that obviates the need for the artificial, one-dollar-damaging, aggregate pollutant, would be an expanded linear programming model in which the transactions costs are treated as separate coefficients of the individual pollution control methods. Separate sets of such coefficients, each corresponding to a different policy instrument such as Least-Cost Regulatory Standards, Revenue-Neutral Pigouvian Taxes, etc., would enable the investigator to directly derive solutions that specify the optimal policy instrument as well as the optimal set of pollution control method activity levels.I am grateful to William Ascher, Murray Weidenbaum, and two anonymous referees for helpful guidance on the paper.     

Pigou, Coase, common law, and environmental policy: Implications of the calculation debate

The implications of the calculation debate are explored for Pigouvian, Coasean, and common-law liability approaches to externality problems. There is no escaping Hayekian-Misean information problems, but the institutional setting within which environmental policies are resolved affects the domain of third-party calculation. The calculation required is likely to be significantly less under common-law arrangements than under administrative processes. The primary implication for environmental policy is that increased reliance on competitive market processes and the common law in copying with externality problems may be more effective than attempts to improve current administrative approaches.     

‘Respect for Law and Sausages’: How Parliament Made Section 31 of the Growth and Infrastructure Act 2013 on the Sale of Employment Rights

The Parliamentary debates on the clause which became section 31 of the Growth and Enterprise Act 2013 (allowing employees to agree to sign away employment rights for shares in the employing company) show that scrutiny by the House of Commons is very poor, and that scrutiny by the House of Lords is intense and very well‐informed. If the Government loses the argument on a Bill in the House of Lords, it will lose the vote. However, during Parliamentary ping‐pong (the back‐and‐forth process of amendment of a Bill between the two Houses) the Commons, and the Government, will normally get their way, however weak the policy proposal, provided that concessions on detail are made, unless the issue is regarded by the Lords as one of fundamental principle.     

Valence characteristics, costly policy and the median-crossing property: A diagrammatic exposition

Voters value valence characteristics such as honesty and competence. In this paper, we consider the situation where candidates may have more than one valence characteristic of importance to the voters. At the same time we introduce a new concept “the median-crossing property" which differs from single-peakedness and is less restrictive than the single-crossing property. If indifference curves satisfy the median-crossing property, then voting is transitive and the majority's preference rankings coincide with those of the median voter; if the indifference curves violate the median-crossing property, then intransitivity may arise. The framework also allows us to consider elections with costly policy.     

How can leaders’ perceptions guide policy analysis in an era of governance?

One of the challenges facing policy analysts is how to improve policy processes in the era of governance. The present article examines how “perceptions analysis,” i.e. the identification of perceptions of different leaders in a specific policy field, may contribute to policy analysis. The article focuses on two questions: What explains leaders’ support for different policy options? Can the examination of leaders’ perceptions help in identifying potential bases for collaboration? Based on mixed methodologies, the study includes interviews with 103 people who influence the policy process and policy discourse in Israel. The findings reveal the importance of the perceptions of causes in explaining leaders’ policy preferences and suggest that identifying their perceptions may help analysts distinguish bases for promoting collaboration and trust among different actors in the policy process, as well as enhancing the legitimacy of the policy process as a whole.     

Narrative policy analysis and the integration of public involvement in decision making

Public involvement in environmental policy analysis and planning may be in some cases for the purpose of incorporating public values and preferences in decision making. Narrative policy analysis is put forward as a method, which is particularly useful to the practice of public involvement for maintaining a juxtaposition of views throughout the policy development and planning process. It is argued that this process may facilitate the consideration of public preferences in a decision-making process. This can be achieved through the joint development of a meta-narrative.     

Equality of Status, Inequality of Result: State Power and High-Level Radioactive Waste

American intergovernmental relationships are continually redefinedthrough political processes by which the state and federal governmentsseek to achieve their respective policy goals. Following a summaryof the development of federal policy for the disposal of high-levelradioactive waste (HLW), federal court cases that have resultedfrom the selection of Nevada as the nation's host for a HLWrepository are discussed. The cases raise, in a unique way,questions regarding the equality of states' power in the contextof constitutional principles such as the equal footing doctrine,the privileges and immunity clause, and the Tenth Amendment.Questions are also raised regarding the ability of states tosafeguard their interests in the political arena as describedin Garcia.     

当前我国政策绩效的价值取向解读

理论上,政策绩效不同于政策结果之处在于它对其内在价值及其行为方式改变的特别关注,因而具有较强的价值意蕴.政策绩效在社会转型中的"应然"状态与"实然"现实之间的差别,就是政策问题存在的闭区间.在此基础上,公共政策的自由裁量权、公共政策的回应性、有效性、公共性、公民精神以及治理、善治等作为一种"绩效指标",对政策绩效及其实现程度等都有很大的影响.社会转型时期各种特质的社会问题的大量积聚、政府主导的政策模式、公民社会的不健全等,首先作为一种"自变量",影响着当下我国的现实政策绩效,某种程度上决定了公共政策的自由裁量权、回应性、有效性、公共性、公民精神等的存在形式和发生作用路径;另一方面,作为"因变量",它们被嵌入不同的制度运行、政策实践以及社会生活的各个环节中,成为一种既定的公共政策价值取向,决定着当下各种利益诉求、利益整合、利益分配、利益落实等的性质和内容.在技术和价值之间,政策绩效找到了其存在的基本空间.     

Understanding a Period of Policy Change: The Case of Hydraulic Fracturing Disclosure Policy in Colorado

This paper investigates the beliefs and framing strategies of interest groups during a period of policy change and the factors explaining policy change. We develop propositions to explore questions concerning policy change primarily from the advocacy coalition framework as well as from other theorie. The propositions are tested by examining the promulgation of a Colorado regulation requiring the disclosure of chemicals used in hydraulic fracturing. Using coded data of documents published by organizations involved in the rulemaking process, we find divergence between industry and environmental groups on their beliefs concerning hydraulic fracturing, as well as their portraying themselves and each other as heroes, victims, and villains, but some convergence on their more specific beliefs concerning disclosure of chemicals. Interviews point to the importance of policy entrepreneurs, timing, a negotiated agreement, and learning for explaining policy change. The findings provide both theoretical and methodological insights into how and why policy changes.     

Do parties matter for local revenue policies? A comparison of Denmark and Norway

Abstract.  This article investigates the impact of party ideology on revenue politics. Theoretically, claims can be made that party ideology should matter for revenue policies. First, leftist governments are more favourable towards government intervention and a large public sector. To accomplish this, leftist governments need more revenue than bourgeois governments. Second, revenue policy is a redistributive policy area well suited for ideological positioning. However, the claim that party ideology does not matter can also be made since raising revenue is unpopular and politicians may shy away from new initiatives. Empirically, the question is unsettled. The article investigates the problem by looking at three revenue policy areas (income and property taxation, and user charges) in two countries (Denmark and Norway). The data used is from the municipal level, providing several hundreds of units to compare. The evidence favours the 'parties matter' argument, particularly in the Danish case.     

The Implications of Framing Effects for Citizen Competence

Social scientists have documented framing effects in a wide range of contexts, including surveys, experiments, and actual political campaigns. Many view work on framing effects as evidence of citizen incompetence—that is, evidence that citizens base their preferences on arbitrary information and/or are subject to extensive elite manipulation. Yet, we continue to lack a consensus on what a framing effect is as well as an understanding of how and when framing effects occur. In this article, I examine (1) the different ways that scholars have employed the concepts of framing and framing effects, (2) how framing effects may violate some basic criteria of citizen competence, and (3) what we know about how and when framing effects work. I conclude that while the evidence to date suggests some isolated cases of incompetence, the more general message is that citizens use frames in a competent and well-reasoned manner.     

Ideas and Policy Change

Peter Hall's 1993 article came at the same time as a parallel body of literature was developing, some building explicitly, some only implicitly, on similar ideas. I review some literature on policy communities, ideas, and the nature of policy change before exploring the statistical distribution of budget changes at three levels of aggregation. The similarity of these results suggests that a single process may be at work rather than different processes for first‐, second‐, and third‐order change, as Hall's original formulation has it. As Hall suggests, these processes typically generate only marginal adjustments but occasionally create fundamental change. The degree of discredit to the status quo may be an important unexplored variable in explaining the ability of policy reformers to enact marginal, substantial, or fundamental policy changes. In sum, this article shows the similarities and mutual value of Hall's approach with others that would appear to be starkly contrasting.     

Attitude Change and Policy Decisions: The Case of Norwegian Alcohol Policy

In a democracy, political decisions ought to be based on public opinion. In practice, however, the mechanisms connecting voter preferences and public policy are complex, and it appears that public opinion may be partly policy-shaping and partly shaped by policy. In this article, some of these mechanisms are discussed. The article presents, first, three models of public reactions to policy decisions. These models are then applied in an analysis of the liberal trends in Norwegian alcohol policy as well as attitudes towards this policy. The results are consistent with a "consumer model", where citizens evaluate public policy according to their preferences, as well as a "support model", where they tend to follow and support decisions made by political leaders. A "discontent model", where implementation brings about less acceptance of a policy, is not supported by the data.     

Governance choice on a serial network

This paper analyzes governance choice in a two-level federation in providing road infrastructure across jurisdictions. Two models are proposed to predict the choice of centralized or decentralized spending structure on a serial road network shared by two districts. While the first model considers simple Pigouvian behavior of governments, the second explicitly models political forces at both a local and central level. Both models led to the conclusions that the spending structure is chosen based on a satisfactory comprise between benefits and costs associated with alternative decision-making processes, and that governance choice may spontaneously shift as the infrastructure improves temporally.     

基于信息不对称的政策执行分析

政策执行问题一直困扰着政策制定者,在影响政策执行的众多因素中,信息不对称无疑是不可忽视的因素之一,它通常干扰着政策的顺利执行,对这种干扰的认识将有助于我们提前采取若干措施来抑制信息不对称产生的种种不利影响。     

Policy Networks, Policy Communities and the Problems of Governance

This article reviews and evaluates the literature on policy networks and policy communities that has emerged in the comparative public policy field. It argues that these concepts are important innovations because they suggest a renewed attempt to be both encompassing and discriminating in describing the policy process: encompassing because they refer to actors and relationships in the policy process that take us beyond political-bureaucratic relationships; discriminating because they suggest the presence of many communities and different types of networks. Yet if the concepts are going to continue to make a contribution, some problems must be resolved. The article suggests three that are particularly important: network and community concepts encounter obstacles in incorporating the influence of ma-cropolitical institutions and the power of political discourse; they have some difficulty in accommodating the internationalization of many policy domains; they have not addressed well the issues of policy innovation and policy change.     

Programme Evaluation and Effectiveness Auditing in Sweden: The Changing Swedish Policy Style*

Modern governments must increase their capacity for analysing and evaluating public programmes. Evaluations, however, take place in a political context and many policies have unstated political goals. Sweden appears to have a highly developed evaluation and effectiveness auditing system and the Swedish case is instructive, not only because of its experience in the evaluation field, but also because it illustrates the changing policy style. Two main agencies are involved in the evaluation process and they both experience some difficulties in their evaluation studies. These difficulties stem in part from the political environment in which they both operate but also relate to their own organisational styles. The resource squeeze could bring broad environmental charges which could be conducive to a greater influence for the two agencies.     

Data envelopment analysis to investigate the Italian legal system and its reform

This work investigates the Italian judicial system and discusses the designing of a policy reform to boost the efficiency of courts, considering the human resources available as well as the expenditure generated by the process to deliver justice. The authors present the benchmarks and shed light on how policy makers embarking on such a process of reform may be misled by inappropriate model definition. In detail, the authors propose a comparative analysis of technical efficiency (TE) scores computed using data envelopment analysis, adopting the same output (number of settled cases) and two alternative sets of inputs (judicial expenditure and human resources). According to the results, without considering the information extracted from the two complementary benchmark analyses, policy makers might be misled in the reform process. Regarding the elements that affect the performance of courts, it may be possible to improve the efficiency of judicial districts by working on judicial procedures. Hence, these are the domains where interventions by policy makers may prove successful. As for policy implications, the models and benchmarks presented here could be used to devise a reform of the judicial system aimed at enhancing its TE, while also keeping public expenditure under control.