Scandinavian Working Papers in Economics

Working Papers,
National Institute of Economic Research

No 125: Making Climate Policy Efficient Implementing a Model for Environmental Policy Efficiency

Sven Ove Hansson , Karin Edvardsson Björnberg and Maria Vredin Johansson ()
Additional contact information
Sven Ove Hansson: National Institute of Economic Research
Karin Edvardsson Björnberg: National Institute of Economic Research
Maria Vredin Johansson: National Institute of Economic Research, Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden

Abstract: We propose a framework for studies of efficiency in environmental poli-cies in the form of an iterative “policy cycle”. The policy cycle’s six ma-jor elements are goal-setting, choice of policy instruments (informa-tion/communication, voluntary agreements, economic instruments and regulation), enforcement, changes in behaviour of public and private agents, effects of policy measures and, finally, evaluation. Through itera-tions of the policy cycle (or parts of it), efficiency in environmental poli-cies can be improved. The policy cycle is applied to climate policies, both mitigation and adaptation and we identify important areas for future research.

Keywords: Policy cycle; environmental efficiency; mitigation; adaptation; goal-setting; voluntary agreements; regulation; behavioural change; evaluation

33 pages, September 1, 2011

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