Fiscal Decentralization Policies in the EU: A Comparative Analysis through a Club Convergence Analysis

Abstract

We study the degree of convergence or divergence in fiscal decentralization in the European Union over the period 1995–2015 using a club convergence approach. First, we analyze non-central expenditure and revenue as percentages of GDP, of total expenditure and of total revenue. The results for the EU-15 countries indicate some clustering, with three clubs formed when using GDP and four to five when using total revenue or expenditure. Second, we study the gap between expenditure and revenue as a proxy of fiscal responsibility. This results in three and two clubs respectively, with Denmark as the divergent country with the highest gap. Finally, we analyze potential unions of clubs and transitions. We also interpret our results taking into account variables found in the literature as determinants of fiscal decentralization. These results show how European countries are quite heterogeneous in terms of fiscal federalism and decentralization, with greater convergence in fiscal responsibility than in the other magnitudes.     

Information and Environmental Policy: A Tale of Two Agencies

In recent years, scholars and practitioners have focused increasing attention on the role of information in achieving environmental policy goals. This article develops a framework for understanding how information is used in making environmental policy, and compares the kinds of information development and communication efforts undertaken by the U.S. Environmental Protection Agency (EPA) and the European Environment Agency (EEA). The analysis suggests that institutional factors such as organizational structure and the mix of policy instruments used by the agency affect the kinds of information efforts undertaken. It also suggests possible areas of focus for environmental information efforts within the EPA and the EEA. These suggestions and the framework provided may also be of use to other environmental agencies.     

The Use of Hypothetical Household Data for Policy Learning: Comparative Tax‒Benefit Indicators Using EUROMOD HHoT

Abstract

Tax?benefit microsimulation models are typically used to quantify the effect of specific policy changes on the income distribution based on representative microdata. Such analysis evaluates policies by considering how different tax?benefit elements interact given personal, household and labour market characteristics. Using hypothetical household data instead helps address broader questions of policy design and systemic (cross-national) differences. This article introduces the Hypothetical Household Tool (HHoT) in combination with the microsimulation model EUROMOD to analyse European tax?benefit policies from a comparative perspective. It presents a series of applications from social welfare analysis illustrating how hypothetical data can benefit comparative academic and policy research.     

European integration and electoral democracy: How the European Union constrains party competition in the Member States

The assignment of policy competencies to the European Union has reduced the divergence of party policy positions nationally, leaving the electorate with fewer policy options. Building upon insights from spatial proximity theories of party competition, the convergence argument predicts convergence particularly in policy domains with increasing EU competence. As the policy commitments that derive from EU membership increase, parties become more constrained in terms of the feasible policy alternative they can implement when in office. The analysis uses manifesto data at the country‐party system level for nine policy domains. It uses ordinary least squares (OLS) estimation with country fixed effects, a lagged dependent variable and country corrected standard errors. Controlling for other factors that could plausibly explain policy convergence, the models also assess whether the convergent effect of party positions varies across different types of parties. The main finding is that in policy domains where the involvement of the EU has increased, the distance between parties' positions tends to decrease. The constraining impact of EU policy decisions differs between Member and non‐Member States. This effect is more apparent for the policy agendas of larger, mainstream and pro‐EU parties in the Member States.     

Evaluation and policy learning: The learners' perspective

This article examines how evaluation induces policy learning – a question largely neglected by the scholarly literature on evaluation and policy learning. Following a learner's perspective, the article attempts to ascertain who the learners are, and what, and how, learners actually learn from evaluations. In so doing, it focuses on what different types of learners actually learn within the context of the evaluation framework (the set of administrative structures defining the evaluation goals and process). Taking the empirical case of three EU programme evaluations, the patterns of policy learning emanating from them are examined. The findings are that only two types of actors involved in the evaluation are actually learning (programme units and external evaluators), that learners learn different things (programme overview, small‐scale programme adjustments, policy change and evaluation methods) and that different learners are in control of different aspects of the evaluation (learning objectives and processes) according to the evaluation framework established by the European Commission.     

External dimensions of European environmental policy: An analysis of environmental treaty ratification by third states

The European Union has become an important leader in international environmental affairs – particularly through the negotiation of multilateral environmental agreements (MEAs) with favourable terms. In this article, EU environmental leadership is studied from a new perspective, focusing on the ratification stage of environmental regime formation. Specifically, it investigates whether the EU is also capable of motivating third states to join its preferred MEAs. It is argued that third states join the EU's preferred MEAs to signal their compliance with EU environmental standards in an effort to become eligible for various rewards that the EU could potentially offer, including a credible membership perspective, access to its lucrative markets, and aid and assistance. The argument is tested by examining the ratification behaviour of 25 non‐EU Member States with regard to all 21 MEAs negotiated under the auspices of the United Nations Economic Commission for Europe (UNECE). The results provide robust support for the theory that EU rewards motivate third states to ratify these treaties. The results withstand a number of statistical tests, even when alternative explanatory factors such as trade intensities, transnational communication and geographic proximity are controlled for. The study is the first large‐scale demonstration of the EU's external influence at the ratification stage of environmental regime formation. By identifying three different channels of EU influence, the research permits a more refined understanding of the EU's role as a promoter of environmental protection standards.     

The Shale Gas Revolution: U.S. and EU Policy and Research Agendas

The “shale gas revolution” raises a host of questions for policy makers and researchers on both sides of the Atlantic. We provide a brief overview of the regulatory environment as it relates to hydraulic fracturing for natural gas in the United States and the European Union. We then pose a set of open questions, which we believe should shape policy and research agendas surrounding shale gas wherever the development of this resource is being pursued or considered.     

Contestation and co-optation: why secrecy in EU external relations varies

Abstract

The question posed in this article is how to explain that the governance of secrecy in EU external relations varies. While the Common Foreign and Security Policy appears to retain its secretive character, the EU’s external trade policy has recently seen a shift towards more transparency. This article argues that to understand this variation, one has to take into account the institutional power of the European Parliament as well as the extent to which the rules and practices of secrecy are perceived as legitimate. The empowerment of the Parliament in trade means that it has had recent success in pushing back secrecy in this area. However, a general finding is that the majority of parliamentarians seem only rarely to question the executive’s governance of secrecy in external relations. The analysis shows that perceptions of legitimacy are crucial to account for different secrecy regimes – a finding that is likely to be relevant for the understanding of secrecy in foreign policy beyond the EU.     

Institutional Change Through Policy Learning: The Case of the European Commission and Research Policy

Research initiatives to enhance knowledge‐based societies demand regionally coordinated policy approaches. By analyzing the case of the European Commission, Directorate‐General Research and Innovation, this study focuses on examining the cognitive mechanisms that form the foundation for institutional transformations and result in leadership positions in regional governance. Drawing on policy learning theories, the study emphasizes specific mechanisms of institutional change that are often less noticeable but can gradually lead to mobilizing diverse groups of stakeholders. Through historical and empirical data, this study shows the importance of policy learning through communication processes, Open Method of Coordination initiatives, and issue framing in creating a stronger foundation for policy coordination in European research policy since the 2000s.     

Making the Harder Yards: Environmental Policy Integration in Australia

Solutions to environmental problems such as climate change, biodiversity loss, and land and water resource degradation require long term integration of economic, social and environmental policies. This poses challenges to specialised, hierarchical public administration systems. The study reported here examined strategies, structures and processes to enable environmental policy integration in six Australian states and territories, and some federal arrangements. The study found that the most prominent success factors, barriers and gaps that affect environmental policy integration relate to leadership, long term embedding of environmental policy integration and implementation capacity. Factors deserving further research and policy attention include leadership, cultural change and capacity building; embedding sustainability in structures and processes; development of a long term evidence based approach; strengthening decentralised implementation arrangements; and evaluation of policy integration initiatives.     

Nordic Cultural Baselines: Accounting for Domestic Convergence and Foreign Policy Divergence

The five Nordic countries converged remarkably when developing domestic institutions, but they diverged significantly when developing foreign policies. Grid-group theory prescribes four contending cultures—hierarchy, egalitarianism, individualism, and fatalism—and offers a basis for understanding the structure of political coalitions and conflicts. Surveys from the five Nordic countries measuring cultural baselines are used to estimate the degree of convergence and divergence. The countries converge with reference to high agreement with egalitarianism, individualism, and hierarchy, and disagreement with fatalism. This concords with the historically strong regime of social democracy in this region. The five countries diverge with reference to their foreign policy in that they polarize along two dimensions. To the east, there is increasing fatalism associated with countries not being members of NATO; to the north, there is increasing egalitarianism associated with countries not being members of the European Union. Given the importance of popular support through referenda, an eventual accession of Norway and Iceland to the EU cannot happen unless egalitarianism diminishes among their publics.     

Policy design and domestic support for international bailouts

Financial bailouts for ailing Eurozone countries face deep and widespread opposition among voters in donor countries, casting major doubts over the political feasibility of further assistance efforts. What is the nature of the opposition and under what conditions can governments obtain broader political support for funding such large‐scale, international transfers? This question is addressed by distinguishing theoretically between ‘fundamental’ and ‘contingent’ attitudes. Whereas the former entail complete rejection or embrace of a policy, the latter depend on the specific features of the policy and could shift if those features are altered. Combining unique data from an original survey in Germany – the largest donor country – together with an experiment that varies salient policy dimensions, the analysis indicates that less than a quarter of the public exhibits fundamental opposition to the bailouts. Testing a set of theories on contingent attitudes, particular sensitivity is found to the burden‐sharing and cost dimensions of the bailouts. The results imply that the choice of specific features of a rescue package has important consequences for building domestic support for international assistance efforts.     

我国环境信息质量保障制度的演进脉络和改进方向——基于83份法规和政策文本的分析

环境污染和生态破坏是人类生存与发展面临的重大问题,高效的环境治理需要高质量的环境信息与有力的保障制度提供支撑。采用内容分析法,从政策主体、政策工具与技术、规范取向三大具体要素入手,对中央层面出台的83份环境政策文本与法规进行量化分析,勾勒我国环境信息质量保障制度的整体图景和演进脉络,以期对未来我国环境信息质量保障制度改进方向提供启示和借鉴。     

Agenda responsiveness in the European Council: public priorities,policy problems and political attention

The existence of political responsiveness in multi-level systems like the EU remains an open question despite significant recent research on the topic. This article studies whether the European Council responds to the shifting policy priorities of European citizens. More specifically, it explores the synchronic and diachronic associations between what people consider to be the most important problems and the political attention devoted to these issues from 2003 to 2014. The economic crisis after 2008 appears to have made the ranking of public concerns and the European Council agenda more alike. However, a detailed examination of the shifts in prioritisation of single issues over time reveals little evidence for dynamic issue responsiveness. Recently the European Council has paid more attention to the issues that the public considered the most pressing problems but the convergence could possibly be driven by the intensity of the underlying policy problems.     

Earth Day and Its Precursors: Continuity and Change in the Evolution of Midtwentieth‐Century U.S. Environmental Policy

Earth Day 1970's legacy overshadows two earlier events resulting in popular misconceptions about U.S. environmental politics: that environmental policy began with Earth Day and that Congress and the president were not concerned with the environment until public opinion and interest groups pressured them. These misconceptions increase public opinion ambivalence and frustrate environmental leaders. This paper describes Earth Day 1970, the congressionally established Outdoor Recreation Resources Review Commission established in 1958, and President Kennedy's Natural Resources Tour of September 1963, arguing the latter two prepared for the convergence of multiple streams of policy change that resulted in the first Earth Day.     

Policy Punctuations in Colorado Water Law: The Breakdown of a Monopoly

The actors, influences, and processes that combine forces to change policy subsystems are modeled in punctuated equilibrium theory wherein monopolistic policy subsystems are broken down through changes in policy images and venue shopping spurred by a critical mobilization of actors. Studying a case of policy change in Colorado water rights, this research examines multiple levels of policy change—local, state, and cross‐case. This research finds that at the state level, punctuated equilibrium theory accurately explains the process by which policies changed to allow for recreational in‐channel uses of water. At the local level, however, these processes are not clearly evident. Using media coverage as a proxy measure for agenda status also shows that policy image change and high public agenda status did not lead to these policy changes within Colorado communities. This article discusses whether we should therefore discount punctuated equilibrium as a model of policy change in this case.     

Japan's policy on steel trade disputes with the United States: a comparative analysis

Abstract

This article examines interactions among the United States, Japan and the European Union over steel trade disputes with particular interest in Japan's reactions to the disputes. For this objective, this paper establishes an analytical framework that takes into account bilateral, international, and domestic factors in formulating a state's external policy and relations. It was found that the special relationship with the United States still impinged on Japan's reactions to steel trade disputes, but its influence has gradually declined. Moreover, growing familiarity with World Trade Organization (WTO) rules and practices and collaboration with other countries enabled Tokyo to expand its policy options to handle steel trade conflicts with Washington. Significantly, Japan formally adopted seemingly bold measures to cope with the US steel safeguard action, but the measures’ substantial influence on the US government was limited compared with those adopted by the European Union. Weak policy coordination among ministries prevented Japan from formulating strategic and effective measures in managing steel trade disputes with the United States.     

“Conservation” as a Catalyst for Conflict: Considering Stakeholder Understanding in Policy Making

Stakeholder negotiation processes are increasingly used in environmental management, but are often difficult due to values differences among stakeholders. These values can be reflected in the language used by stakeholders, which may lead to conflict in negotiation processes. This study investigated whether there are widespread differences among Colorado water stakeholders in how they define the term “conservation,” a key value and policy term, and whether this leads to conflict in negotiations. Using multiple methods in a cross‐sectional case study, use of the term and possible policy implications were analyzed. Stakeholder respondents in this study who had experienced difficulty in water negotiations also perceived a higher degree of miscommunication in their negotiations. The most important finding presented here suggests that clarity of language and transparent discussion of key value‐representative terms may aid in stakeholder negotiations, and that minority stakeholders may be more aware of values and language differences than their majority counterparts.     

Agricultural Policy Reform and Policy Convergence: An Actor-Centered Institutionalist Approach

This article examines the entry into the agricultural policy arena of a new market liberal vision. Battles over market liberalism are some of the defining struggles of the present age. The article develops a stylized framework designed to help understand some of these political struggles and some of the underlying dynamics of the complex policy debates that have occurred. It begins with a brief review of the changed economic context for farming that gradually took place in the 1990s and then provides an overview of how market liberal values and norms might be applied to agriculture. Constructing a stylized set of negotiations in a game-theoretic form that might take place in a debate over the merits of a market liberal approach, it shows two different paths for agricultural policy reform. The analysis suggests that policy change is likely to move more in a market-liberal direction under a center-left government than under a conservative one. This model isthen tested by looking at policy change in two sectors (cereal grains, dairy) in three countries (Australia, Canada, and the United States of America). The analysis suggests that the models are more helpful and policy convergence is more pronounced when sectors are open to international competition. In contrast, the models work less well and convergence is lower in highly protected sectors.