Environmental dispute resolution and hazardous waste cleanups: A cautionary tale of policy implementation

New York State experimented with replacing their litigation-oriented system for achieving toxic dump site cleanup with one promising to lower transaction costs through alternative dispute resolution. Our analysis of outcomes is informed by three generations of implementation work focusing on (1) the motivations and incentives shaping individual behavior, (2) the larger organizational and political factors associated with variation across cases, and (3) the generic properties of policy implements. This mosaic approach to explanation produces, we believe, a more lifelike picture of use to policy makers for understanding the dynamic and interrelated nature of their choices.     

Symposium comment: On the new politics of public policy

The process is not the problem, the problem is the problem. Rudolph Penner (1984). …We argue the superiority of the outcome from the process, not of the process from the outcome. The constancy of the economist's objection to this conclusion when applied to governmental rather than market decisions simply often reflects the fact that, while some economists are not disturbed that consumer preferences lead to allocation policies other than best respond to their own tastes, when political preferences lead to governmental policies not consistent with his informed and considered preferences, they are tempted to attribute irrationality to government.     

The impact of a gasoline tax on auto exhaust emissions

The EPA implements its policy of exhaust emission control by setting standards specified in terms of grams of pollutants per mile traveled. As a result, the tax must first restrain the vehicle miles traveled (VMT) if it is to have an impact on emission at all. EPA's choice of miles traveled as the medium through which its policy of pollution control must run is unfortunate, because travel is an activity that people resist giving up. This is reflected in a low long-run price elasticity of travel demand. Consequently, it takes substantial increases in the gasoline tax to make an impact on long-run travel demand. Simulation results show that under an alternative policy option, where EPA's standards are specified in terms of grams of pollutant per gallon of fuel burned, the same long-run reduction in exhaust emissions achievable today can be achieved (at an even higher level of confidence) with less than one-tenth of the increase in gasoline price required under the existing policy regime.