Paul Lehmann

Using a Policy Mix for Pollution Control { A Review of Economic Literature

This article provides a review of economic studies analyzing the use of multiple policies - a socalled policy mix - to cope with single pollution problems. To guide and structure the review, an analytical framework is developed and applied. The framework integrates transaction costs into the analysis of pollution problems and policies to overcome them. Moreover, it understands a pollution externality not only as a market failure but more generally as the failure of private governance structures. Based on this insight, two rationales for using a policy mix are identified. First, a policy mix may help to correct for multiple reinforcing failures of private governance structures, such as pollution externalities and technological spillovers. Second, a policy mix can be employed if the implementation of single first-best policies brings about high transaction costs - e.g., when marginal pollution damages are heterogeneous or polluters are unlikely to comply with the policy. For each rationale, the relevant literature is presented. Based on the review, avenues for future research are identified.

Barriers and opportunities for urban adaptation planning: analytical framework and evidence from cities in Latin America and Germany

This paper analyzes barriers and opportunities for effective adaptation planning in cities. In particular, we focus on the preparation and adoption of adaptation strategies and action plans by urban planners. For this purpose, we develop a two-tier framework of variables influencing decision-making. The framework emphasizes interaction between different commonly discussed categories of barriers (or opportunities) and their sources. We argue that whether or not urban planners take action to foster adaptation to climate change depends on three first-tier variables: information, resources, and incentives. In addition, we point out that each of these variables may itself be a function of a set of underlying second-tier variables, including actor-specific characteristics of the decision-maker, the institutional environment, and the natural and socio-economic environment. Within this framework, we specify barriers and opportunities for effective adaptation planning as hampering or promoting characteristics of these first- and second-tier variables. We apply and test the framework within the context of four case studies carried out in Lima (Peru), Santiago (Chile), Berlin and Sangerhausen (both Germany). We present anecdotal evidence, which we have gained from expert interviews in the cities. Our results indicate that the relevant categories of barriers are mainly the same across developing and developed countries. What differs is their severity. Moreover, we confirm the importance of the institutional context, including barriers and opportunities associated mainstreaming adaptation, multi-level governance and participation. Finally, our analysis reveals barriers that are specific for local or urban adaptation action, such as the strong dependency on the national regulatory framework.

Promoting multifunctionality of agriculture: an economic analysis of new approaches in Germany.

In the early and mid-1990s, a number of policies to support the multifunctionality of agriculture, e.g., agri-environmental schemes (AESs), started to be implemented in Europe. Based on experiences with their implementation, new approaches have since been developed to advance these policies, and other new opportunities have arisen to further strengthen the multifunctionality of agriculture. Here we present three innovative approaches for supporting agricultural multifunctionality in Germany: participatory and local approaches for developing AESs, voluntary co-operative agreements (CAs) between farmers and water suppliers, and the combination of the impact mitigation principle with environmentally friendly farming. We evaluate these new policies in terms of their ability to improve the cost-effective provision of environmental benefits. We do this by applying a framework that encompasses an analysis of the cost-effective allocation of resources for producing environmental benefits and of the implementation and decision-making costs. Our analysis suggests that for locally developed AESs and CAs, there is a trade-off between more cost-effective resource allocation and better monitoring, on the one hand, and higher decision-making costs, on the other. When combining the impact mitigation principle with farming, we expect to find savings in terms of production, decision-making and implementation costs.

Public Choice and Urban Water Tariffs—Analytical Framework and Evidence From Peru

Many developing countries face the challenge to implement water sector reforms to improve service quality. Our analysis focuses primarily on barriers to increases in water tariffs, which are usually a main pillar of water sector reforms. Discussing the case of Peru, we illustrate that the specific structure of voting water users together with the self-interest driven behavior of politicians on the local and central level can explain why actors refrain from implementing higher water tariffs. Water suppliers on the local level are subject to strong political interference by local politicians. To address such barriers, water tariff reforms may need to be accompanied by more fundamental institutional reforms, for example, by merging local to regional water suppliers, as well as by public campaigns making the use of funds from tariff increments for service improvements more transparent and tangible for water users.

Policy convergence as a multifaceted concept: the case of renewable energy policies in the European Union

The literature on policy convergence has identified numerous facets and causal drivers of convergence. Distinguishing four dimensions of convergence (object, benchmark, drivers and directed process) helps clarify why and in what form policy convergence may occur (or not). Thus, depending on, for example, the object of analysis (policy outcome or instruments used), the same empirical case may give rise to opposing assessments. Furthermore, both economic and political drivers are necessary to account for successful policy convergence: economic convergence partly explains why countries may face similar problems, and political mechanisms explain why they might choose similar policies to solve a given problem. This article illustrates the multifaceted character of convergence for the dynamic field of renewable energy policies in the European Union. The empirical results indicate temporary convergence in the case of policy support instrument choices and conditional convergence in terms of renewable shares. However, the results suggest divergence of public R&D subsidies targeting renewables.

Public Choice barriers to efficient climate adaptation – theoretical insights and lessons learned from German flood disasters

In this paper, we take a Public Choice perspective to identify and categorise barriers to efficient public climate adaptation. Specifically, we distinguish three dimensions of public adaptation: extent, structure (form and timing) and organisation (coordination across territorial authorities and policy fields). Within each of these dimensions, we investigate how the self-interest of voters, pressure groups, bureaucrats and politicians may bias adaptation decisions. Thus, we indicate specific barriers to efficient public adaptation. Based on this framework, we illustrate how Germanys response to major flood disasters reflects the incentive structure of concerned stakeholders and their political interaction. The ad hoc character of some public adaptation measures implies a clear bias from the efficient benchmark. In conclusion, we argue that the propositions of Public Choice theory shed some light on how empirical public adaptation processes unfold.

Oportunidades y obstáculos para la adaptación urbana frente al cambio climático en América Latina. Casos de la Ciudad de México, Lima y Santiago de Chile

This paper analyzes opportunities and barriers for urban adaptation to climate change. A framework aiming at influencing decision-making was developed. Whether urban planners take action depends on three first-tier variables: information, resources, and incentives. These variables are themselves functions of underlying variables, including actor-specific characteristics of the decision-maker, the institutional environment, and the natural and socio-economic environment. The framework is applied in three case studies for Mexico City, Lima and Santiago, Chile, where anecdotal evidence has been gathered from expert interviews. The obtained results indicate that the relevant categories of barriers are mainly the same across the case studies. Moreover, the importance of the institutional context is confirmed, including challenges associated with mainstreaming adaptation, multi-level governance and participation.