So what for policy?
-
Upload
charde-deleon -
Category
Documents
-
view
19 -
download
0
description
Transcript of So what for policy?
Fix ‘market failures’ – through ombudsman services to police
corporate greed and misbehaviour, and ensure competition
To provide for ‘non-market’ goods and services – especially associated with the environment
But how? Through legislation and regulation?
Or through incentives (stewardship schemes etc.)
Or??Key questions: How much to pay, for what,
and how, and to whom?
So what for policy?
For what?
How much?
Consumers buy
more ES?
Citizens “vote”for more/ better
ES.
Y NWon’t pay the price?
‘cheap talk’ – markets working?
Markets working
Y
A thought experiment – supposing that we had ‘reliable’ data on Votes, WTP and actual spending on ES, would we expect these three to say the same thing?
How much?
Others don’t (free
rider problem)?
Consumers buy
more ES?
Citizens “vote”for more/ better
ES.
Y NWon’t pay the price?
‘cheap talk’ – markets working?
Free rider deficit > market deficit?
N
Markets working
Y
Y
Markets working
N
Free-Rider deficit: the difference between the sum of individual WTPs and the sum of WTPs conditional on other people also paying for ES.Market deficit: the cost of providing the (additional) ES.
How much?
Others don’t (free
rider problem)?
Consumers buy
more ES?
Citizens “vote”for more/ better
ES.
Y NWon’t pay the price?
‘cheap talk’ – markets working?
Free rider deficit > market deficit?
N
Markets working
Encourage/Promote ES clubs OR, as a last resort, subsidise consumption of Env. friendly
products
Y
Y
Markets working
N Y
How much?
Others don’t (free
rider problem)?
Consumers buy
more ES?
Citizens “vote”for more/ better
ES.
Y NWon’t pay the price?
‘cheap talk’ – markets working?
Free rider deficit > market deficit?
N
Markets working
Encourage/Promote ES clubs OR, as a last resort, subsidise consumption of Env. friendly
products
Improve 3rd party
validation
Improve Info. & Comm. Systems
Labels are
unreliable?
N
Y
Y Y
Markets working
N Y
N
Info. is inadequat
e?
Y
How much?
Other things more
important?
Others don’t (free
rider problem)?
Consumers buy
more ES?
Citizens “vote”for more/ better
ES.
Y N
Too much effort?
Won’t pay the price?
‘cheap talk’ – markets working?
Free rider deficit > market deficit?
N
Markets working
Encourage/Promote ES clubs OR, as a last resort, subsidise consumption of Env. friendly
products
Improve 3rd party
validation
Improve Info. & Comm. Systems
Labels are
unreliable?
N
Y
Y Y
Markets working
N Y
N
Info. is inadequat
e?
N N
Y Y Y Y
Markets working
Markets working