scholarly journals Designing combinatorial exchanges for the reallocation of resource rights

2018 ◽  
Vol 116 (3) ◽  
pp. 786-791 ◽  
Author(s):  
Martin Bichler ◽  
Vladimir Fux ◽  
Jacob K. Goeree

We describe the design and implementation of a combinatorial exchange for trading catch shares in New South Wales, Australia. The exchange ended a decades-long political debate by providing a market-based response to a major policy problem faced by fisheries worldwide: the reallocation of catch shares in cap-and-trade programs designed to prevent overfishing. The exchange was conducted over the Internet to lower participation costs and allowed for all-or-nothing orders to avoid fragmented share portfolios. A subsidy was distributed endogenously to facilitate the transfer of shares from inactive to active fishers. Finally, prices were linear and anonymous to ensure that sellers of identical packages received the same payments. These features were crucial to mitigate economic distortions from introducing catch shares and to gain broad acceptance of the program. However, they led to computationally challenging allocation and pricing problems. The exchange operated from May to July 2017 and effectively reallocated shares from inactive fishers to those who needed them most: 86% of active fishers’ bids were matched and their share deficits were reduced by 95% in high-priority share classes. Similar reallocation problems arise in fisheries with catch-share systems worldwide as well as in other cap-and-trade systems for resource rights, e.g., water and pollution rights. The implemented exchange illustrates how computational optimization and market design can provide policy tools, able to solve complex policy problems considered intractable only a few years ago.

2004 ◽  
Vol 10 (2) ◽  
pp. 124 ◽  
Author(s):  
Andrew Brennan

Conservation issues for agricultural landscapes are typical examples of "wicked" public policy problems: that is, ones in which questions are not clearly defined, and there is apparent conflict between different sets of values, all of which are legitimate. The paper argues that how to protect intrinsic value in nature is itself a wicked policy problem, complicated by the fact that at least three different senses of "intrinsic value" are easily confused. The challenge for policy in Australian agriculture is how to protect remaining natural values by processes that are fair to stakeholders, governed by scientific credibility and sensitive to the plurality of values held by groups within the community. The paper argues that scientists themselves can play an important role not just in problem definition, but also in helping set the agenda for action that will be effective in preserving natural diversity.


Author(s):  
Gerry Czerniawski

‘Wicked policy problems’ are defined as complex, not fully understood by policy makers, highly resistant to change and seemingly immune to any evidence likely to bring about change for the better. Policy, in the case of prison education, is not necessarily driven by what works and is often not evidenced-based. It is increasingly positioned by political expediency and the signalling of politicians’ ‘toughness on crime’. In this chapter I look at three distinctly different prison education systems in Northern Europe; in England, Germany and Norway. I examine the extent to which discourses associated with both the marketisation of education and penal populism have influenced the construction and facilitation of prison education in all three countries. Finally, I argue that, to varying degrees, the reconstruction of prison ‘education’ into low-cost job skills training contributes to the domination of policies that speak more to public moral panic and the need to cut the economic costs of welfare than to the rehabilitation of prisoners.


2021 ◽  
Author(s):  
◽  
Iris Anne Hutchinson

<p>Many social policy problems are recognised as complex and intractable, and hence necessitate analysts' having the capability to address them. Epistemological influences embedded in approaches to policy can impose constraints on the natural capacity and capability that people have to make sense out of particular experiences of complexity in the course of policy analysis work. Within the dominant policy approach adopted by policy analysts under the rubric of evidence-based policy, such complexity capability eschews any explicit role for opinion. However, the application of Q methodology by Michel van Eeten among others in a specific case of policy deliberation in the Netherlands, which had proven resistant to the standard, evidence-based policy analysis, shows that there could be a role for what is otherwise overlooked. Accordingly, this thesis examines the proposition that opinion indeed may play an important role in policymaking in complex and intractable situations. Q methodology is an established research methodology for acquiring and developing knowledge from a subjective standpoint. It has a growing record of successful application to public policy controversies, where solutions were made possible because opinion - and its everyday experiential rationality - were made available. Q methodology is also seen, however, as a marginal methodology. There has been insufficient explanation of why the application of Q methodology could make a positive difference to policy problems of a complex and intractable kind. The two research questions focus on the efficacy of Q methodology. Q methodology could make a difference in an adjunctive sense. It meets a policy need, namely to make opinion available as a complement to other evidence knowledge and thus adds to understanding of problems and solutions while remaining firmly within the prevailing evidence-based policy epistemology. Alternatively, Q methodology could make a difference of a transformative kind. It opens up a new epistemological space for doing policy analysis work with the power to create substantial policy-analytic change. To address these questions, the thesis develops an argument that establishes the linkages between pragmatism, complexity thinking and Q methodology and, in so doing, provides a path for understanding the role and place of opinion in policy making contexts. It proceeds through several stages which together make an epistemological argument for the efficacy of Q methodology. First, the nature of the policy problem is explicated as one of the separation of opinion from knowledge. Secondly, the thesis turns to a counter argument drawing on Peirce's pragmatism and his attention to abduction. In the next stage, dominant practice ideas about the capability needed to address complexity are critically examined, which shows that opinion is not valued in that practice. The success of van Eeten's work leads to a detailed examination of complexity in the policy context, and the claim that opinion is less problematical than are the overall epistemological choices made in policy analysis. Focusing on those epistemological choices, the argument draws together, in a fresh look, the thinking entailed in Q methodology in respect of its abductive logic and its theory of knowledge. Q methodology is shown to be a kind of science that allows objective fact to be approached from a subjective standpoint under experimental conditions. Finally, therefore, Q methodology is shown to open up an epistemological space quite unlike others. This makes the practice described as "reading complexity" in a real-world policy application possible.</p>


Omega ◽  
2017 ◽  
Vol 66 ◽  
pp. 248-257 ◽  
Author(s):  
Xiaoping Xu ◽  
Wei Zhang ◽  
Ping He ◽  
Xiaoyan Xu

2020 ◽  
Vol 50 (4) ◽  
pp. 645-671 ◽  
Author(s):  
Manuel Fischer ◽  
Nicolas W Jager

Abstract Horizontal cooperation among political systems is crucial for addressing large-scale and boundary-crossing policy problems. This article introduces and analyzes policy-specific factors that help to explain horizontal cooperation among subnational-governments. It thereby builds on but specifies arguments from the literature on horizontal federalism that has usually been focusing on general institutional and societal factors to explain cooperation. These factors capture how a given policy problem unfolds (problem pressure), the ways in which subnational governments are exposed to and experience its consequences in similar or unequal ways (functional interdependencies and their symmetry), and how the issues are treated domestically (problem awareness). We illustrate the potential importance of these factors by analyzing treaties among Swiss substates in the water domain and relying on network analytic methods. We find that problem awareness and functional interdependencies and their (a)symmetries are important, whereas problem pressure has a mixed influence, depending on the issue area.


2013 ◽  
Vol 27 (1) ◽  
pp. 87-102 ◽  
Author(s):  
Lawrence H Goulder

About 45 years ago a few economists offered the novel idea of trading pollution rights as a way of meeting environmental goals. Such trading was touted as a more cost-effective alternative to traditional forms of regulation, such as specific technology requirements or performance standards. The principal form of trading in pollution rights is a cap-and-trade system, whose essential elements are few and simple: first, the regulatory authority specifies the cap—the total pollution allowed by all of the facilities covered by the regulatory program; second, the regulatory authority distributes the allowances, either by auction or through free provision; third, the system provides for trading of allowances. Since the 1980s the use of cap and trade has grown substantially. In this overview article, I consider some key lessons about when cap-and-trade programs work well, when they perform less effectively, how they work compared with other policy options, and how they might need to be modified to address issues that had not been anticipated.


2021 ◽  
Author(s):  
◽  
Iris Anne Hutchinson

<p>Many social policy problems are recognised as complex and intractable, and hence necessitate analysts' having the capability to address them. Epistemological influences embedded in approaches to policy can impose constraints on the natural capacity and capability that people have to make sense out of particular experiences of complexity in the course of policy analysis work. Within the dominant policy approach adopted by policy analysts under the rubric of evidence-based policy, such complexity capability eschews any explicit role for opinion. However, the application of Q methodology by Michel van Eeten among others in a specific case of policy deliberation in the Netherlands, which had proven resistant to the standard, evidence-based policy analysis, shows that there could be a role for what is otherwise overlooked. Accordingly, this thesis examines the proposition that opinion indeed may play an important role in policymaking in complex and intractable situations. Q methodology is an established research methodology for acquiring and developing knowledge from a subjective standpoint. It has a growing record of successful application to public policy controversies, where solutions were made possible because opinion - and its everyday experiential rationality - were made available. Q methodology is also seen, however, as a marginal methodology. There has been insufficient explanation of why the application of Q methodology could make a positive difference to policy problems of a complex and intractable kind. The two research questions focus on the efficacy of Q methodology. Q methodology could make a difference in an adjunctive sense. It meets a policy need, namely to make opinion available as a complement to other evidence knowledge and thus adds to understanding of problems and solutions while remaining firmly within the prevailing evidence-based policy epistemology. Alternatively, Q methodology could make a difference of a transformative kind. It opens up a new epistemological space for doing policy analysis work with the power to create substantial policy-analytic change. To address these questions, the thesis develops an argument that establishes the linkages between pragmatism, complexity thinking and Q methodology and, in so doing, provides a path for understanding the role and place of opinion in policy making contexts. It proceeds through several stages which together make an epistemological argument for the efficacy of Q methodology. First, the nature of the policy problem is explicated as one of the separation of opinion from knowledge. Secondly, the thesis turns to a counter argument drawing on Peirce's pragmatism and his attention to abduction. In the next stage, dominant practice ideas about the capability needed to address complexity are critically examined, which shows that opinion is not valued in that practice. The success of van Eeten's work leads to a detailed examination of complexity in the policy context, and the claim that opinion is less problematical than are the overall epistemological choices made in policy analysis. Focusing on those epistemological choices, the argument draws together, in a fresh look, the thinking entailed in Q methodology in respect of its abductive logic and its theory of knowledge. Q methodology is shown to be a kind of science that allows objective fact to be approached from a subjective standpoint under experimental conditions. Finally, therefore, Q methodology is shown to open up an epistemological space quite unlike others. This makes the practice described as "reading complexity" in a real-world policy application possible.</p>


Author(s):  
Patrik Marier

We frequently employ analogies such as a leaking roof or finishing last in a ranking to illustrate that there is a serious problem requiring attention. Unfortunately, policy realities are far more complex and less obvious since policymakers do not benefit from objective measures or clear signals akin to having water dripping over their head to indicate the presence of a problem. In fact, they face a plethora of policy actors constantly engaged in defining policy problems for them based on competing frames of references. The term “policy problems” evokes questions of what makes a social issue a policy problem, but it also raises questions regarding whether problems can actually be solved via a public response and how. Policy problems occupy a crucial role in policy studies, if not for the simple reason that political authorities are unlikely to alter or create policies without the presence of problems. As such, policy problems occupy an important place in popular theoretical frameworks frequently employed in the field of public policy. The formulation of policy problems is at the heart of the punctuated-equilibrium theory since these can result in the creation of new political coalitions seeking transformative policy change. In the social construction of target populations approach, the ways in which the public perceives particular subgroups or subpopulations dictate our understanding of policy problems and the types of instruments to deploy. Frameworks for policy feedback assume that current policies structure the formulation of policy problems along the lines of altering existing policies. In the multiple-streams theoretical framework, policy problems are part of a toolkit used to validate the use of already made solutions by policy entrepreneurs seeking the right opportunity for implementation. A thorough treatment and analysis of policy problems exist within the policy design literature. Scholars operating within this tradition have emphasized the individual characteristics of policy problems and, as importantly, how these matter when it is time to enact solutions. Characteristics of problems, such as causality and severity, are key elements in the identification and formulation of policy problems and their likelihood to feature prominently in the policy agenda of governmental actors. Additional elements, such as the divisibility of policy problems and the extent to which these problems can be monetarized, matter in assessing the possibility of enacting solutions. This raises the fundamental question of whether policy problems can actually be resolved. Mature policies are the norm in industrialized countries, and these are increasingly subject to international agreements. Consequently, there are, for example, many more interdependencies, which have led to the reemergence of wicked-problems analyses. However, a substantial number of contributions have associated complexity with wicked problems, raising questions surrounding their intrinsic qualities and the danger of conceptual stretching.


2016 ◽  
Vol 50 (3) ◽  
pp. 360-378 ◽  
Author(s):  
Kari Lancaster ◽  
Caitlin Hughes ◽  
Alison Ritter

This article provides an historical and descriptive account of the introduction and development of the use of drug detection dogs as a tool for street-level illicit drugs policing in one Australian jurisdiction, NSW. Within this account, the legal and political context in which drug detection dogs emerged and gained prominence is described. The introduction of drug detection dogs was contingent on the political imperatives at work throughout the 1990s in NSW, and the increased salience of both policing and illicit drugs issues at this time. In documenting the emergence of the use of drug detection dogs from the early 2000s, and the associated legal challenges and rapid legislative responses, the role of third sector organisations and the media in generating debate is notable. Debates concerning the dogs’ effectiveness emerged in the mid- to late-2000s, giving rise to anomalies between policy and evidence. The more recent legislative developments and public and political debate about drug detection dogs from 2012 to 2014 can be seen in light of this history. By taking a different view which situates decisions and events in their historical and political context, we begin to see the dynamic processes and contingency involved in the development and implementation of particular illicit drugs policing policies over time. As debate about drug detection dogs continues to play out, generating new insights into drugs policing policy processes is imperative.


Author(s):  
Paul Cairney ◽  
Emily St Denny

This book shows how to analyse, and seek to solve, the most enduring, puzzling, and important problems in public policy. Policy scholars often begin by relating such problems to two broad questions: why does policymaker attention and action seem disproportionate to the size of policy problems, and why is there such a gap between their policy aims and outcomes? The answer relates to (a) the limited resources of policymakers, in relation to (b) the complexity of their environments: policymakers only have the ability to pay attention to, and influence, a tiny proportion of their responsibilities, and they engage in a policymaking environment of which they have limited understanding and even less control. This insight resonates particularly in Westminster systems, in which most political debate rests on the idea that ministers are accountable because they can exert central government control. Rather, policymaking systems are complex and ‘multi-centric’ and a focus on the choices of a small number of powerful actors does not help us understand the system as a whole.


Sign in / Sign up

Export Citation Format

Share Document