Abstract

The foremost limitation of public policy approaches is that the context of the public policy problem is not taken into account. In the case of complex and dynamic environmental problems, such as global climate change, there is a need for a framework for approaching economic policy that takes account of the complexity and changing realities of such problems. The objective of this paper is to present a framework to approach economic policy making in a case of such complex and dynamic environmental problems. The literature on economic and public policy theories, the need for a systematic policy design process and approaches to complexity and dynamics in policy making is framework available to one where the focus is on the best learning process to facilitate economic policy making on complex and dynamic environmental problems. Based on sociological models of experiential learning, a multiple-loop learning framework (MLLF) is presented. This model illustrates the importance of orchestrated science-policy interactions through interactive learning. The opportunities and limitations of this model are discussed with reference to the debate on economic policy for global climate change.

Highlights

  • The sheer complexity and dynamics of global environmental problems, such as climate change, has opened an intensive debate on the approaches of various economic theories to environmental policy making

  • It is realized that climate change is an economic problem as scarce resources are either vulnerable to climate change or have to be allocated to the mitigation of climate change (Nordhaus, 1991; Cline, 1992; Fankhauser, 1995; Bruce, Lee & Haites, 1996; IPCC, 200 I)

  • In this paper it was attempted to formulate a conceptual framework for economic policy making on complex and dynamic environmental problems

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Summary

INTRODUCTION

The sheer complexity and dynamics of global environmental problems, such as climate change, has opened an intensive debate on the approaches of various economic theories to environmental policy making. The question, is whether various economic decisionrules are necessary and sufficient to inform economic policy on global climate change, and how this should be done. The objective of this paper is to answer the question of how economic policy making for complex and dynamic environmental problems can best be approached.

FROM ECONOMIC THEORY ON THE ENVIRONMENT TO POLICY MAKING
THE NEED FOR A SYSTEMATIC POLICY DESIGN PROCESS
The nature of the mitigation cbaUenge
The implementation of mitigation options
Supportive decision making
CONCLUSIONS
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