(S.28) Choosing Policy Instruments

Question 1

Policy instruments

Answer 1

The set of techniques by which governmental authorities wield their power in attempting to ensure support and effect or prevent social change

*means by which policy objectives are pursued

Question 2

Policy instruments also known as

Answer 2

Policy tools
Policy techniques
Policy means

Question 3

T or F: when there is broad agreement over policy objectives, there are often quick conclusions about the means to be used

Answer 3

Even when there is broad agreement over policy objectives, there are often disagreements about the means by which those objectives should be pursued

Question 4

Instruments for government action set up ________ between the state and its citizens

Answer 4

relationships

Question 5

examples of policy instruments

Answer 5

• Laws (e.g., prohibition of human cloning
• Taxation (e.g., when buying cigarettes * Subsidies (e.g., rate reduction for long-term care)
• Cash transfers (e.g., universal basic income)
• Education campaigns (e.g., Youtube ad)
• Vouchers (e.g., food stamps)
• Charges (e.g., emissions charges)
• Labelling (e.g., menu labelling in restaurants)
• Grants (e.g., business grants)

Question 6

The “Stick”

Answer 6

REGULATORY instruments that OBLIGATE people to act in accordance with what the government says

Question 7

Regulation

Answer 7

government intervention through a set of rules identifying permissible and impermissible activity on the part of individuals, firms, or government departments and agencies, along with accompanying sanctions and rewards

Question 8

The “carrot”

Answer 8

ECONOMIC instruments used as incentives or disincentives to guide individuals in the direction of the objectives of policy

Question 9

Carrot or stick: “…the handing out or the taking away of material resources [where] the addressees are not obligated to take the measures involved.”

Answer 9

carrot (economic)

Question 10

carrot or stick: People can avoid constraints imposed by these instruments

Answer 10

carrot

Question 11

carrot or stick: Imposes the most constraint among policy instruments

Answer 11

stick (regulation)

Question 12

carrot or stick:

Question 13

T or F: A statute or regulation should be chosen only after the full range of possible instruments has been considered

Answer 13

T

Question 14

Policy instrument examples = stick

Answer 14

• Legislation (i.e., laws)
• Regulations (defining the application and enforcement of legislation)
• prohibiting human cloning (max), medical marijuana legalization (min)

Question 15

Policy instrument examples = carrot

Answer 15

• Subsidies (conditional transfers of funds from governments to individuals, etc.)
• Taxes
• Customs duties
• Grants
• Vouchers

*tax on cigarettes (max, disincentive), nicotine therapy products exempt from tax (min, incentive)

Question 16

The ‘sermon’

Answer 16

INFORMATION dissemination (a.k.a. moral suasion, exhortation)

*attempts at influencing people through the transfer of knowledge, the communication of reasoned argument, and persuasion

**Note: Information AS a policy instrument versus information ON a policy instrument

Question 17

carrot, stick or sermon: Includes the transmission of knowledge as well as judgments about which phenomena are good or bad, how citizens should behave, etc.

Answer 17

sermon

Question 18

which imposes the least constraint among policy instruments, carrot, stick or sermon?

Answer 18

sermon
* No obligatory directives or provision of material resources

Question 19

sermon policy instrument examples

Answer 19

○ Advertisements (television, online, billboards, etc.)
○ Product labelling

*pregnant women avoiding travel to zika (max, negative don’t do), flu shot promotion posters (min, affirmative, do)

Question 20

the stick:
1. instrument type
2. how is behaviour influenced
3. who decides
4. degree of constraint of behaviour intended

Answer 20

1. regulation
2. threat of sanction, penalties
3. government
4. high

Question 21

the carrot:
1. instrument type
2. how is behaviour influenced
3. who decides
4. degree of constraint of behaviour intended

Answer 21

1. economic means
2. costs associated w/behaviours
3. market & individuals
4. only to those choosing to engage w/products and services

Question 22

the sermon:
1. instrument type
2. how is behaviour influenced
3. who decides
4. degree of constraint of behaviour intended

Answer 22

1. information
2. provision of information & moral suasion
3. individuals
4. none

Question 23

Nudge

Answer 23

any aspect of the choice architecture that alters people’s behaviour in a predictable way without forbidding any options or significantly changing their economic incentives

Question 24

Policy instruments almost always come in 1 of 2 packages to best achieve policy objectives

Answer 24

• Vertical packaging: one instrument is directed at the implementation of another

*Horizontal packaging: two or more instruments are directed at the same target

Question 25

Qs to consider when Choosing the ‘right’ instrument(s)

Answer 25

• Which policy instrument is the best/most likely to achieve policy objectives?
• What is the relationship between the instrument and the policy objective(s): has the relationship been specified?
• Why do policymakers believe the instrument will be able to solve or reduce the policy problem?
• What are the past experiences of addressing similar policy problems?
• What are the past experiences of implementing this type of instrument?

Question 26

3 criteria of choosing the right instrument

Answer 26

• Effectiveness: the likelihood of the policy instrument achieving the policy objective(s) – includes feasibility, cost, timeline, etc.
• Legality: the degree to which the policy instrument adheres to relevant legal rules
• Legitimacy: the degree of support/acceptance a government has for its choices, based upon correspondence with public’s views, values, feelings, objectives

Question 27

Choice of policy instruments is mediated by historical, political, social, and legal ________;

Answer 27

contexts
- policy-makers’ preferences
- governments’ ideological leaning
- the nature of issues

Question 28

T or F: Each policy instrument has a policy context in which it occupies a predominant position relative to other instruments

Answer 28

T: E.g., health and safety: evidence suggests governments feel compelled to intervene, and that regulatory instruments usually have a head start in terms of being prioritized—an area of ‘no compromise and strong action’