Policy Design and Tools

Part 3: Policy Tools and Implementation

Policy Tools

Definition: The means by which the policy will achieve its goals

Key Characteristics

• How government seeks a policy objective
• The interface between the government's intentions and actual implementation outcomes
• Range from direct provision to market incentives to regulations

The selection of appropriate policy tools is crucial for successful implementation

Policy Tool Typology

Schneider & Ingram (1990)

Four Categories of Tools:

1. Authority tools: Rules backed by sanctions (e.g., mandates)
2. Incentive tools: Rewards or penalties (e.g., taxes, subsidies)
3. Capacity tools: Build ability to comply (e.g., training, funding)
4. Symbolic tools: Signal intent or values (e.g., proclamations)

Most policies use a mix of tools, each reflecting assumptions about how people behave

Dimensions of Policy Tools

Effective tools match the problem's nature, target population, and administrative context

Love, Fear, and Money

Etzioni (1961)

Three basic reasons why people comply with rules, orders, or policy:

1. Love: Compliance out of a sense of agreement, love, or moral obligation
2. Fear: Compliance out of a sense of fear of punishment
3. Money: Compliance is in one's monetary or remunerative interest

Effective policies find a balance between low levels of fear and high levels of love and money

Source: Etzioni, A. (1961). A Comparative Analysis of Complex Organizations

Love, Fear, and Money: Applications

Policy Examples

• Love: Public campaigns appealing to moral duty (e.g., recycling, blood donation)
• Fear: Enforcement through traffic fines, criminal penalties, business regulations
• Money: Use of tax incentives, subsidies, grants, or direct economic benefits

Love, Fear, and Money: Trade-offs

• Fear-based tools can prompt immediate compliance but may foster resistance or resentment
• Love-based tools encourage sustainable behavior change but require time and cultural alignment
• Money-based tools are often effective but can be costly and risk creating dependency

Selecting the right compliance mechanism depends on the policy domain and context

Balancing Compliance Mechanisms

Policy designers must consider:

• Cultural context - what motivates the target population?
• Time horizon - immediate compliance vs. long-term sustainability
• Resource constraints - economic tools require budgets
• Political feasibility - coercive tools face more resistance
• Administrative capacity - can the implementing agency enforce?

The most effective policies typically employ a mix of all three mechanisms tailored to context and goals

Policy Tool Considerations

Key Principles

• Non-Coercive to coercive (love to fear) exist along a continuum
• The extent to which government will use its resources to achieve a policy goal
• Choosing effective tools requires a good causal theory

Policy Tool Considerations

Questions to Ask

• What behavior needs to change?
• Who needs to take action?
• What might motivate compliance?
• What tools are politically feasible?

Policy Tool Considerations

Tool Selection Criteria

• Effectiveness
• Efficiency
• Equity
• Enforceability
• Political acceptability

Models of Policy Tools

Howlett, Ramesh, and Perl

Policy tools represent the specific instruments governments use to implement policies and achieve policy goals.

They range from direct service provision to market incentives to regulations.

The choice of tools reflects both technical considerations and political values

Source: Howlett, M., Ramesh, M., & Perl, A. (2009). Studying Public Policy: Policy Cycles and Policy Subsystems

Economic Tools Characteristics

• Favor individual freedom and choice
• Tend to use non-coercive means
• Makes many assumptions about what is "possible" and what is "rational"
• Assumes that people are rational actors

Economic Tools Examples

• Subsidies: Agriculture, energy, housing
• Tax incentives: R&D credits, mortgage deductions
• Vouchers: Education, housing, healthcare
• User fees: Parks, highways, utilities
• Market creation: Cap and trade systems

Economic Tools: Trade-offs

Advantages

• Preserve individual choice and market mechanisms
• Often more politically palatable than regulations
• Can harness market efficiency for public goals
• Allow flexible responses by target populations

Economic Tools: Trade-offs

Disadvantages

• May not work when markets are imperfect
• Can be captured by special interests
• Benefits may be unequally distributed
• Effectiveness depends on accurate pricing
• May have unintended consequences

Economic tools work best when markets function well and policy goals align with individual self-interest

Political Tools

"Any instrument [or tool] can theoretically accomplish any chosen aim, but governments prefer less coercive instruments unless forced by either recalcitrance on the part of the subject and/or continued social pressure for change to utilize more coercive instruments."

- Howlett, Ramesh, and Perl

Political Tool Examples

• Regulations: Command-and-control rules
• Direct provision: Government services
• Information: Public campaigns
• Public enterprises: State-owned entities

Source: Howlett, M., Ramesh, M., & Perl, A. (2009). Studying Public Policy: Policy Cycles and Policy Subsystems

Tools and Choices

Key Considerations

• Technically sound design ≠ political viability
• Resources constrain available options
• Behavioral assumptions matter
• Multiple tools typically needed

Tools and Choices

Tool Selection Factors

• Administrative capacity
• Organizational culture
• Past policy experiences
• Political support/opposition
• Time constraints

The most successful policies use complementary tools that address different aspects of the problem

Objective and Subjective Tools

Objective - Rational Characteristics

• Target population: The citizens who receive the benefits or bear the costs of the policy
• Values: What is being distributed or promoted
• Rules: Guidelines governing or constraining action
• Rationales: The justification for the policy
• Assumptions: Behavioral theories that tie all of these together

These represent the technical elements of policy design - the "mechanics" of how policies function

Subjective - Value Characteristics

Key Questions

• Who justifiably deserves the costs and benefits of the policy?
• What values should be backed by the coercive powers of the state?
• Who (or what) should have the freedom of action promoted or constrained to uphold those values?

These represent the normative and political dimensions of policy design

Objective and Subjective Elements: Interplay

Climate Policy Example

Effective policy design requires attention to both dimensions

Integrating Policy Design Elements

Key Principles

• Goals must be clearly articulated but may require flexibility
• Causal theories should be evidence-based but acknowledge uncertainties
• Tools should match both the technical aspects of the problem and reflect societal values
• Target populations must be precisely defined while considering equity implications
• Implementation plans need to address both administrative capacity and political sustainability

The art of policy design lies in synthesizing technical expertise with democratic values

Policy Design in Practice

Policy design is iterative, not linear - it requires ongoing learning and adaptation

Conclusion

That's it for Today

Next Time: Implementation

We'll explore how policy designs translate into real-world action

Remember: Good policy design balances technical effectiveness with political feasibility and democratic values