Understanding Policy Instruments for Behavior Change

Sep 26, 2024

Lecture on Policy Instruments

Overview

  • Policy instruments are tools used to compel behavior change.
  • Aim to influence behavior of people, industries, factories, and governments.
  • Six different policy instruments discussed:
    1. Bans
    2. Permits
    3. Technology standards
    4. Performance standards
    5. Economic-based policies
    6. Information-based policies
  • Examples and strengths/weaknesses of each provided.

1. Bans

  • Prohibition on behavior or use of a product.
  • Example 1: Endangered Species Act (ESA) - Ban on "take" (harm, kill, collect, etc.) of endangered species.
  • Example 2: Clean Air Act & Montreal Protocol - Ban on ozone-depleting chemicals (e.g., CFCs).

2. Permits

  • Restrictions or regulations allowing certain behaviors.
  • Example: Driver's license, pesticide applicator license, asbestos removal certification.
  • Often includes performance and technology requirements (e.g., vehicle emissions standards).

3. Technology Standards

  • Mandated use of specific technology to reduce pollution or increase safety.
  • Example 1: Clean Air Act - Best available emissions technologies for new pollution sources.
  • Example 2: Reasonable available emissions technology for existing facilities.
  • Example 3: Hunting regulations - Standards on weapon types for hunting seasons.

4. Performance Standards

  • Mandate achieving specific performance thresholds.
  • Example 1: National Ambient Air Quality Standards - Limits on particulate matter (PM 2.5).
  • Example 2: Paris Agreement - Global temperature change goals (1.5°C limit).
  • Example 3: Clean Power Plan (not enacted) - Aim for greenhouse gas reduction.

5. Economic-Based Policies

  • Use market principles and financial incentives/penalties.
  • Example 1: Cap and trade - Permits for pollution, reducing supply over time to drive down pollution.
  • Example 2: Carbon fee and dividend - Tax on carbon emissions with dividends paid to citizens.

6. Information-Based Policies

  • Require documentation of environmental impacts without mandating changes.
  • Example: National Environmental Policy Act (NEPA) and State Environmental Quality Review Act (SEQRA).
  • Aim to reveal environmental impacts for voluntary reduction.