Understanding Policy Instruments: Tools for Effective Solutions

School

University of California, Davis**We aren't endorsed by this school

Course

ESP 1

Subject

Philosophy

Date

Dec 12, 2024

Pages

Uploaded by bruhabu2eb

Policy instrument choice (part 2)Week 5 - 10.29.2024ESP 1 - Fall 2024

Outline-“solutions” → theories of policy interventions-Policy tools → specific mechanisms and structures that operationalize solutions-Policy failure

Policy instruments-Last week, we identified some ideas for solving policy problems-Policy professionals group these ideas in terms of the how different policy ideas structure collective action:-Assign responsibility → who does what?-Provide mechanism for change → what do they do and how?

Categorizing policy instruments-There is no single “correct” set of categories-We use Deb Stone’s from our readings:-Incentives-Rights-Powers-Rules-Facts-In a bit, we’ll get a bit more specific (e.g., grants vs. loans vs contracts)

You were asked to pick 2 of these topics to read a chapter about…-Incentives-Rights-Powers-Rules-Facts

You were asked to pick 2 of these topics to read a chapter about…-Incentives-Rights-Powers-Rules-FactsWith person next to you:-What did you read? (what _will_ you read?)-What makes your solution different than the other four?-Example from TODAY where this solution shaped your behavior OR experience

Incentives-Theory of change behind incentives?-Environmental example?-Benefits?-Drawbacks?

Incentives-Theory of change behind incentives?“people are rational and will respond to rewards and punishments”-Environmental example?Electric vehicle tax rebates-Benefits?Voluntary. Flexible. Others?-Drawbacks?Response uncertain. Potentially coercive? Others?

Rights-Theory of change behind rights?-Environmental example?-Benefits?-Drawbacks?

Rights-Theory of change behind rights?Legal system – compliance, grievance, redress – allows rights holders to invoke public authority-Environmental example?CA right to water? Hmmm…-Benefits?Can be a powerful symbol. Generate voluntary compliance.-Drawbacks?Law is not immune to power and influence. Rights enforcement is expensive and time consuming.

Powers-Theory of change behind powers?-Environmental example?-Benefits?-Drawbacks?

Powers-Theory of change behind powers?“Someone else can solve this if we given them authority and capacity…”-Environmental example?-State enforcement of federal water quality standards-Local zoning and building codes-Benefits?-match problem scale-Solve collective action dilemma (centralized)-Enhance autonomy (decentralized)-Drawbacks?-Inconsistency (decentralized) or inflexible (centralized)

Rules-Theory of change behind rules?-Environmental example?-Benefits?-Drawbacks?

Rules-Theory of change behind rules?“Consistent, coordinated behavior will solve this problem…”-Environmental example?Pollution standards for cars, factories, etc.-Benefits and drawbacks?-Tough to balance coverage and discretion.-Dependent on legitimacy-Democracy depends on some balance of people objecting to rules but also not being “those people”

Facts-Theory of change behind facts?-Environmental example?-Benefits?-Drawbacks?

Facts-Theory of change behind facts?“Problems occur because of bad/lack of information. Better/more info will change behaviors and alleviate problem.” -Environmental example?-Benefits?Low coercion. Autonomous choices.-Drawbacks?Ignorance isn’t at the root of most conflicts.Data doesn’t resolve disputes (usually)

Pause… What questions do you have?

“Solutions” → Policy instruments8KLDWXZↄVWY D WXZD[\^ FUVXHIGLMOWXZ DQRT\]_Z[]D\]_VWY?

Policy instruments (or “tools”)‘an identifiable method through which collective action is structured to address a public problem' (Salamon 2002)Who does what?Public in natureSpecific form or mechanism

Policy instrumentsThere are lots of policy instruments!Direct governmentGovernment corporationsRegulationPublic informationTaxes/permitsContractingGrantsLoans/loan guaranteesVouchersTax expendituresTort liabilityGovernment insurance

Policy instruments-We won’t go through them all.-All combine certain elements of rights/powers/facts/rules/incentives-Let’s check out a couple….

Instrument example 1: Direct government-“Direct government” = “we’ll just do this”1.Collective action responsibilities: Agency will act2.Identifiable method: Agency ‘produces’ internally3.Public problem (examples):

Instrument example 2: Contracts-“Contracts” = “pay someone to do this specific thing”1.Collective action responsibilities: Agency will fund, contractor will act2.Identifiable method: Agency gives money to third party who performs service/returns deliverable3.Public problem (examples):

Instrument example 3: Grants-“Grants” = “give someone money to support their efforts”1.Collective action responsibilities: grantor spends, grantee uses money2.Identifiable method: Agency gives money to third party who uses money for defined purposes3.Public problem (examples):

Instrument example 4: Government insurance-“Government insurance” = “provide insurance that free market will not provide on its own” (what is insurance?....)1.Collective action responsibilities: government underwrites, companies offer insurance, clients maintain policies2.Identifiable method: Government agrees to underwrite insurance policies3.Public problem (examples):

Instrument example 5: Taxes/permits/charges-“Charge fee (time+money) for behavior”1.Collective action responsibilities: users/actors pay fees, agency collects fees and enforces2.Identifiable method: Government restricts behavior and allows people to pay to engage in an action3.Public problem (examples):

Instrument example 6: Vouchers-“Coupon” where government agrees to pay for something 1.Collective action responsibilities: holders use vouchers, firms/organizations accept vouchers, government reimburses firms/organizations who accept vouchers2.Identifiable method: Government issues reimbursable tokens that recipients “spend” and takers get reimbursed for accepting3.Public problem (examples):

What matters when choosing?-Norms-Time frame-Values-Risk tolerance-Technical feasibility-Managerial feasibility-Existing policies-Authority of chooser-… other considerations?

Policy failure-Dimensions of failure-Type I vs. Type II error-Expectations vs. reality

Policy fails due to….-Bad idea?-Bad job? -Bad luck?

Bad idea fails...-Invalid theory of cause and effect-Unclear and/or poorly communicated-Veto points outside of decision-makers’ control

Bad job fails...-Insufficient resources-Insufficient skill/buy-in -Failure to maintain support

Bad luck fails...-Conditions outside of purview:-Global recession-Pandemic-Natural disaster-BUT BUT BUT --- bad policy creates bad luck-Policy that only works under great conditions is bad policy, not bad luck

Type I and Type II error-Type 1 error → action was a mistake-Type 2 error → mistake was inaction+Most policies aren’t binary, so debate can also be “too much” vs. “too little”

Type I and Type II error-Type 1 error → action was a mistake-Type 2 error → mistake was inactionIt’s often easier to think about Type I, but overemphasis on Type I has major opportunity costs!

Failure = expectations - reality-Sometimes failure is about what happens-Sometimes failure is about what people expected to happenLeaders don’t have full control over either, but clear expectations can help...

What questions do you have?

Extra stuff below, left out for time considerations…

What matters when choosing?-Norms → how different from SOP?-Time frame-Values-Risk tolerance-Technical feasibility-Managerial feasibility-Existing policies-Authority of chooser-… other considerations?

What matters when choosing?-Norms → how different from SOP?-Time frame → when does it need to work?-Values -Risk tolerance-Technical feasibility-Managerial feasibility-Existing policies-Authority of chooser-… other considerations?

What matters when choosing?-Norms → how different from SOP?-Time frame → when does it need to work?-Values → moral or philosophical considerations?-Risk tolerance-Technical feasibility-Managerial feasibility-Existing policies-Authority of chooser-… other considerations?

What matters when choosing?-Norms → how different from SOP?-Time frame → when does it need to work?-Values → moral or philosophical considerations?-Risk tolerance → can you be flexible? Need certainty?-Technical feasibility-Managerial feasibility-Existing policies-Authority of chooser-… other considerations?

What matters when choosing?-Norms → how different from SOP?-Time frame → when does it need to work?-Values → moral or philosophical considerations?-Risk tolerance → can you be flexible? Need certainty?-Technical feasibility → possible?-Managerial feasibility-Existing policies-Authority of chooser-… other considerations?

What matters when choosing?-Norms → how different from SOP?-Time frame → when does it need to work?-Values → moral or philosophical considerations?-Risk tolerance → can you be flexible? Need certainty?-Technical feasibility → possible?-Managerial feasibility → manageable?-Existing policies-Authority of chooser-… other considerations?

What matters when choosing?-Norms → how different from SOP?-Time frame → when does it need to work?-Values → moral or philosophical considerations?-Risk tolerance → can you be flexible? Need certainty?-Technical feasibility → possible?-Managerial feasibility → manageable?-Existing policies → support in place? interactions?-Authority of chooser-… other considerations?

What matters when choosing?-Norms → how different from SOP?-Time frame → when does it need to work?-Values → moral or philosophical consideration?-Risk tolerance → can you be flexible? Need certainty?-Technical feasibility → possible?-Managerial feasibility → manageable?-Existing policies → support in place? interactions?-Authority of chooser → within your purview?-… other considerations?