Assessing Environmental Policy Tools: Regulatory, Incentive-based, and Quasi-Market-based Approach in the United States
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Abstract
The problem of environmental degradation and crisis is ahot issue in contemporary policy area. Environmental problem, fur-thermore, is one typical case of market failure. Hence, market does not have any motivation to address environmental problem without gov-ernmental intervention. It is desirable to address this issue by making public-private partnership, however, in that the whole society including a state, company, and individual addresses this problem altogether to the extent that it cannot be solved solely either by the logic of market or governmental intervention. Likewise, almost industrialized countries make efforts to mitigate environmental problems with various policy tools moving beyond traditional policy.I especially focus on three policy programs such as regulation (AB-1493, California), tax incentive (the GBTC, New York), and qua-si-market approach (the Clean Air Act of 1990), by which the United States strivesto protect environment, and then compare the policies, based on criteria for evaluation. The criteria consist of effectiveness, effi-ciency, legitimacy, and equity. I then add supplement criteria of general-ity, contextuality, and complementarities. The upshot of this paper is that effective and efficient administrative management can be achieved through crafting policy tools carefully considering specific conditions and situations for policy area, with emphasizing negotiation, persuasion, and public-private partnership rather than traditional command and control or governance without government.
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