Demand-side Incentives Research Articles

Without mandated demand for greenhouse gas removal – High integrity GtCO2-scale global deployment will be jeopardized: Insight from US economic policy 2020–23

Greenhouse gas removals (GGRs) will be essential at GtCO2-scale to offset residual emissions and achieve global net zero by 2050. Engineered GGRs have the greatest long-term, large-scale CO2 storage potential and, therefore, offer opportunities to realize high-integrity removals. However, the most prominent engineered solutions are capital-intensive, generate expensive offset credits, and have achieved minimal market penetration. The United States has established policies subsidizing GGR deployment value chains which generate high-integrity removals to bring down engineered GGR costs. The US regime has the potential to result in substantial GGR cost reductions which will likely have implications on the policy frameworks for global GGR technology deployment. To date, research addressing the impact of US policies on the commercial imperatives and investment uncertainties for the global GGR sector is limited. Using a mixed methods approach, this contribution unpacked the motivations of early private sector actors. It did this by identifying characteristics of the most investable GGR business models and policy implementation requirements to establish the nascent sector, which will be critical to the GGR sector becoming a global multi-trillion-dollar, self-sustaining market. The analysis reveals that cost reduction alone will be insufficient to establish a high-integrity global GtCO2-scale sector. Systemic market risks, especially certainty of offtake through demand-side incentives, need to be `addressed. Therefore, the development of a stable and sustainable GGR sector, both in the US and globally, will remain problematic due to the inability to attract large-scale private capital investment.

Contagious greenwashing investment

PurposeThis study explores the contagion of greenwashing strategies among ESG mutual funds. It investigates how the greenwashing behaviors of peer funds within the same family influence a fund’s decision to engage in greenwashing. The research also examines the impact of greenwashing on genuine ESG funds and explores the mechanisms through which greenwashing strategies spread across ESG mutual funds.Design/methodology/approachThis paper employs a two-stage least squares regression model with cross-fund returns standard deviation as an instrumental variable to disentangle the peer effects of greenwashing from family-level characteristics. The analysis incorporates various fund characteristics and introduces four contagion channels through which greenwashing may influence genuine ESG funds.FindingsThe study finds greenwashing behavior in ESG funds is positively influenced by similar practices within their fund family. Larger assets under management and older funds with higher management fees show resilience against greenwashing influences, while team-managed funds are more susceptible. Additionally, socially responsible investors struggle to distinguish between genuine and greenwashing ESG funds, which may contribute to the persistence of greenwashing practices.Originality/valueThis paper contributes to the literature by delineating the mechanisms of greenwashing contagion within ESG mutual funds. It also examines the demand-side incentives for adopting greenwashing strategies, offering insights into the implications for fund flows and investor behavior. This study is among the first to analyze the contagion effects of greenwashing strategies across an extensive network of ESG funds, enriching our understanding of the broader impacts of greenwashing in the context of socially responsible investing.

High street retail environment interventions and their theorised impacts on health and wellbeing: A scoping review.

Health outcomes are influenced by social and environmental determinants of health. As places where people work, live, meet and consume, high street retail environments are influential in shaping health. In recent decades, high streets have been in decline, prompting policies to revitalise retail environments and support local businesses, particularly in European and North American countries. The aim of this scoping review was to systematically map evidence on retail environment interventions, to gain a deeper understanding of the current evidence base assessing their possible health and wellbeing impacts. The objectives were to identify different types of interventions and the outcomes they address; and the mechanism through which interventions are theorised to influence health and equity. Peer-reviewed studies were identified through academic databases (MEDLINE, Embase, EconLit, Web of Science and Social Policy and Practice) using relevant search terms. Additional (grey) literature was identified using citation scanning and online searches. Studies were eligible if they evaluated interventions with a significant focus on supporting the retail environment, reported on at least one health and wellbeing outcome and were written in English. Relevant data were extracted and presented descriptively. An interpretive approach was taken to analyse theories of change. The searches identified 53 peer-reviewed studies and nine grey literature reports. Interventions were categorised as follows: area-based initiatives, business improvement districts, business incentives, and demand-side incentives. Studies predominantly evaluated impacts on social and environmental determinants of health. Some studies measured impacts on self-rated (mental) health, physical activity and food consumption and purchasing. Studies reported evidence of both improved and worsening outcomes. Theories of change were often under-specified and reductionist, lacking a clear understanding of the complex systems in which interventions take place. Future interventions could benefit from more comprehensive theories of change that meaningfully integrate economic, and health and wellbeing outcomes. This requires intersectoral collaboration.

A scoping review of retail environment interventions and their impacts on health and wellbeing

Abstract Background ‘High streets’ and town centres are influential in shaping health. In recent years many countries implemented policies to revitalise and financially support retail environments. The aim of this scoping review is to systematically map evidence on retail environment interventions, to gain an understanding of their possible health and wellbeing impacts. This review identifies types of interventions, the health outcomes they address and the associated theories of change. Methods Peer-reviewed studies in English were identified through five academic databases using search terms for relevant initiatives and health and wellbeing outcomes. Grey literature was identified online and through citation scanning. Studies were eligible if they evaluated interventions with a significant focus on supporting the retail environment, reporting on at least one health and wellbeing outcome. Extracted data were presented descriptively. Theories of change were analysed using an interpretive approach. Results Of 6,752 identified evaluations, 53 peer-reviewed studies and 10 grey literature reports were included. Interventions types were area-based initiatives, business improvement districts, business incentives, and demand-side incentives. The most common outcomes were social and environmental determinants of health, although impacts on physical health, mental health, and food consumption and purchasing were also studied. Most interventions involved partnerships with the private sector or were ‘whole-of-society’ initiatives. Evidence for the effectiveness of interventions was mixed, depending on the type of intervention. Theories of change were found to be reductionist and often did not account for context-specific factors. Conclusions To our knowledge, this is the first review of literature evaluating the health impacts of interventions aimed at revitalising retail environments. Future interventions should more comprehensively address economic, health and social outcomes. Key messages • High street environments are influential in shaping health, and initiatives aimed at supporting local businesses should consider health and social objectives. • Most literature to date evaluates social and environmental outcomes of retail environment interventions rather than more direct health and wellbeing outcomes.

How do demand-side incentives relate to insurance transitioning behavior of public health insurance enrollees? A novel voting ensemble approach for ranking factors of mixed data types

How do demand-side incentives relate to insurance transitioning behavior of public health insurance enrollees? A novel voting ensemble approach for ranking factors of mixed data types

Do government incentives increase indigenous innovation commercialisation? Empirical evidence from local Ghanaian firms

PurposeGovernment incentives are critical for successful indigenous innovation commercialisation, yet there are concerns about the efficacy of these incentives. Therefore, this study examines the effectiveness of government incentives on successful indigenous innovation commercialisation in the context of low-income economies by testing the effects of demand and supply-side incentives on firm performance in the small-scale industry in Ghana.Design/methodology/approachThe theoretical framework for this study is built on the below-the-radar theory of innovation (Kaplinskyet al., 2009). Using a sample of 557 firms engaged in commercialising various indigenous innovations in the small-scale industry in Ghana, PLS-SEM was deployed to assess 11 hypothesised paths based on a validated questionnaire.FindingsThe model results, at a 5% significance level, indicate that supply-side incentives are statistically insignificant on sales and profitability but have significant positive effects on employment. The direct and moderating influence of supply-side incentives and market factors on overall firm performance is also insignificant, while demand-side incentives to buyers have significant positive effects on all the performance metrics and positively moderate the effects of market factors.Originality/valueThe research focused on commercialising indigenous innovation in the context of low-income economies. Few studies, if any, have separately explored the effect of demand and supply-side government incentives on indigenous innovation in the context of low-income economies. The findings suggest that innovation support should focus more on the demand side of the innovation value chain.

Generic Price Regulation and Drug Expenditures: Evidence From Canada

ObjectivesRapid growth in pharmaceutical spending is a major challenge in Canada. To control rising costs, the Canadian government implemented a generic pricing policy in 2013, which reduced prices for some prescription generic drugs by roughly 50%. This article explores the effects of the Canadian pricing policy on drug expenditures and drug utilization among seniors. MethodsUsing a unique prescription claims data, this article adopts a difference-in-differences methodology to estimate the policy effects, and it further investigates the mechanisms by exploring the demand-side incentives and the role of health insurance design with a triple-difference approach. ResultsExploiting the policy variation across drugs and provinces, the results suggest that the policy has reduced drug expenditure per capita, largely because of the inelastic demand among seniors. Although the policy leads to lower out-of-pocket costs for seniors facing coinsurance than for those with a fixed copayment, individual utilization and total demand display no differences across cost sharing. ConclusionsThe price regulation in Canada was successful in reducing drug expenditures per capita. The success rests on the interaction with demand-side regulations and demand incentives. The evidence of cost containment in Canada can provide some insights to other countries with similar needs and priority.

Implications of Performance-based Financing Implementation for Maternal and Child Health Outcomes in Nigeria: A Scoping Review

Background: Performance-based financing (PBF) is seen as an open health system reformtailored to suit the needs of countries, even in a fragile context. It is thought to have the ability to address the strategic challenges of the sustainable development goals. This study explored the implementation of PBF in order to determine whether it improves maternal and child health outcomes in the Nigerian context.
 Methods: This was a scoping literature review of online multiple databases and programme implementation documents. Six databases and an online library were searched using 30 key words, alone and in combination using Boolean terms. Thirty articles and five implementation documents were screened. At the end, 25 published articles and five implementation documents were reviewed. An adapted World Bank PBF conceptual framework was used for the review.
 Results: We found mixed results across most of the service indicators consistent with findings in most lower, middle income countries. In both pilot states, the quality of health services, mainly technical, improved remarkably. There was improved utilisation of maternal and child health services, particularly institutional delivery, modern contraceptives and under-five vaccination. However, client dimension of quality was reportedly poor. The study found no impact of PBF on equity.
 Conclusion: Collaborative partnership to develop policy frameworks for demand-side incentives to ensure equitable access to health services and sustainability of the project is essential. We further recommend that more incentives be paid for client quality dimension.

When are new energy vehicle incentives effective? Empirical evidence from 88 pilot cities in China

• Empirical evidence for NEV market sales responses to incentive policies is provided. • Purchase restrictions are effective in cities with poor air quality or large sizes. • The policy mix accounts for 16.9–47.6 % variation in NEV sales in distinct contexts. • The NEV industry has a tendency to transition from policy-driven to market-driven. • The removal of local fiscal subsidy has a significant, negative effect on NEV sales. Incentive policies play an essential role in the rapid expansion of new energy vehicles (NEVs). Based on a comprehensive panel dataset, this paper investigates the effectiveness of various demand-side incentives in 88 NEV pilot cities in China. First, to explore where policies work effectively, we segment the pilots into several categories and conduct group regression. The results indicate that purchase restriction policies are effective in cities with poor air quality or large sizes. Use restrictions take effect only in cities with poor traffic infrastructure. Charge subsidies work in cities with good air quality or good traffic infrastructure. Second, to measure the contribution of policies, we conduct Shapley decomposition and reveal that the policy mix accounts for 16.9–47.6 % of the variation in NEV sales in distinct city categories. The empirical results of the decomposition also confirm the tendency of a transition from policy-driven to market-driven in the NEV industry. Third, to further validate the role of purchase subsidies, we consider the policy removal event in 2019 as a quasi-natural experiment and demonstrate that the removal of local purchase subsidy had a significant, negative effect on NEV sales. In light of the above findings, we suggest that policymakers avoid making one-size-fits-all policies and design precise and personalized policies, such as purchase restrictions (charge subsidies) for cities with poor (good) air quality. Moreover, a long-term, dynamic subsidy scheme remains necessary for the current stage.

Limited impact of COVID-19 recovery packages on near-term CO2 emissions pathways

Part of the economic recovery plans implemented by governments following COVID-19 is directed towards the energy transition. To understand the potential effects of these post-COVID green recovery packages on reductions of global greenhouse gas emissions until 2030, we investigated three different approaches. First, we analyzed simulation results of Integrated Assessment Models (IAMs) to infer the change in CO2 intensity of GDP that could result from post-COVID low-carbon investment plans. Second, we investigated the scenarios the International Energy Agency (IEA) provided based on a bottom-up energy system model. Combining the two approaches, we found that green recovery packages implemented and planned globally can lead to an emissions reduction of merely 1%–6% from the 2030 baseline levels at most. Third, we looked into the results of the Adaptative Regional Input-Output model, which simulates the dynamic effects of economic crisis and fiscal stimuli through supply chains following labor shortage. The third approach shows that the increase of activity driven by fiscal stimuli leads to a rebound of CO2 emissions even if they do not target carbon-intensive sectors. We conclude that green recovery packages targeting low-carbon technologies have a limited impact on near-term CO2 emissions and that demand-side incentives, as well as other policy efforts to disincentivize the use of fossil fuels, are also crucial for scaling up climate mitigation.

Credit-based demand side incentive mechanism optimization for load aggregator

Demand side resources play an important role in dealing with the seasonal and intermittent demand–supply mismatch problem in the power system under the global goal of carbon neutrality. By integrating the uncertain load reduction capacity of small-scale demand resources, load aggregator (LA) participates in demand response (DR) programs to obtain profits, and the deviation between the actual and its scheduled load reduction quantity leads to the loss of revenue. In order to guide users to declare reasonable demand side resource capacity, a credit-based incentive mechanism (CBIM) is designed for LA in this paper, and the corresponding bi-level optimization model of demand side incentive price is established. In the upper-level model, the optimization objective is to maximize the DR revenue of a specified LA, in which the compensation price associated with the response credit is provided to users. In the lower-level model, the expected load reduction is declared by users whose goal is to maximize their revenues considering the comfort loss as well as the compensation price. Simulations illustrate that by properly determining the credit-based demand side incentive price, users are encouraged to feedback load reduction according to their actual capacity, thus improving the revenue of LA in integrating demand side resources.

Global Survey of Demand-Side Factors and Incentives that Influence Advanced Trauma Life Support (ATLS) Promulgation.

We aimed to identify and describe demand-side factors that have been used to support ATLS global promulgation, as well as current gaps in demand-side incentives. We performed a cross-sectional survey about demand-side factors that influence the uptake and promulgation of ATLS and other trauma-related CME courses. The survey was sent to each of the four global ATLS region chiefs and 80 ATLS country directors. Responses were described and qualitative data were analyzed using a content analysis framework. Representatives from 30 countries and each region chief responded to the survey (40% response rate). Twenty of 30 country directors (66%) reported that there were some form of ATLS verification requirements. ATLS completion, not current verification, was often the benchmark. Individual healthcare systems were the most common agency to require ATLS verification (37% of countries) followed by medical/surgical accreditation boards (33%), governments (23%), training programs (27%), and professional societies (17%). Multiple credentialing frameworks were reported including making ATLS verification a requirement for: emergency unit or trauma center designation (40%), contract renewal or promotion (37%); professional licensing (37%); training program graduation (37%); and increases in remuneration (3%). Unique demand-side incentives were reported including expansion of ATLS to non-physician cadre credentialing and use of subsidies. ATLS region chiefs and country directors reported a variety of demand-side incentives that may facilitate the promulgation of ATLS. Actionable steps include: (i) shift incentivization from ATLS course completion to maintenance of verification; (ii) develop an incentive toolkit of best practices to support implementation; and (iii) engage leadership stakeholders to use demand-side incentives to improve the training and capabilities of the providers they oversee to care for the injured.

Early Childhood Education and Care in a Post-pandemic Economy: Lessons from China

The mismatch between the demand side and the supply side in the Early Childhood Education and Care (ECEC) sector has been a recurring pattern for a long period of time. Unlike the other levels and types of education, over 60% of provision in the ECEC sector comes from private organizations in China. Following the outbreak of the coronavirus pandemic in 2020, challenges have emerged in the high-level customer contact services and the classic labour-intensive industries. From the "regular epidemic prevention and control" point of view, regulatory reform is necessary, such as translating the "price cap regulation" into the "rate of return regulation", enforcing the demand side incentive, combining regulatory innovation and technical innovation, and creating good conditions for the professional development of teachers in the ECEC sector.

Multi-Model Fusion Short-Term Load Forecasting Based on Random Forest Feature Selection and Hybrid Neural Network

In an increasingly open electricity market environment, short-term load forecasting (STLF) can ensure the power grid to operate safely and stably, reduce resource waste, power dispatching, and provide technical support for demand-side response. Recently, with the rapid development of demand side response, accurate load forecasting can better provide demand side incentive for regional load of prosumer groups. Traditional machine learning prediction and time series prediction based on statistics failed to consider the non-linear relationship between various input features, resulting in the inability to accurately predict load changes. Recently, with the rapid development of deep learning, extensive research has been carried out in the field of load forecasting. On this basis, a feature selection algorithm based on random forest is first used in this paper to provide a basis for the selection of the input features of the load forecasting model. After the input features are selected, a hybrid neural network STLF algorithm based on multi-model fusion is proposed, of which the main structure of the hybrid neural network is composed of convolutional neural network and bidirectional gated recurrent unit (CNN-BiGRU). The input data is obtained by using long sliding time windows of different steps, then multiple CNN-BiGRU models are trained respectively. The forecasting results of multiple models are averaged to get the final forecasting load value. The load datasets come from a region in New Zealand and a region in Zhejiang, China, are used as load forecast examples. Finally, a variety of load forecasting algorithms are introduced for comparison. The experimental results show that our method has a higher accuracy than comparison models.

The Green Transition in Oil Dependent Economies in the MENA Region 'Turning off the Pumps, Breaking the Oil Addiction, and Greening the Desert' Case Study: A Non-Oil Future for Saudi Arabia and Algeria?

The Curious Case of the Green Transition: Managing a Historic Shift in Oil Exporting Countries While the Middle East and North African (MENA) region is home to only 6% of the world’s population, it controls 60% of the world’s known oil resources and almost half of the world’s natural gas reserves (Hilmi et al. 30). An additional source strengthens this statement exhibiting that total production of oil in MENA countries accounts for 34,418 thousands barrels per day while that of natural gas amounts to 798.3 billion cubic metres per year (Exhibit 3). Due to scientific consensus on anthropogenic climate change, oil is considered a controversial energy source and therefore deserves special attention. Trends towards non-carbon based and sustainable energy sources are gaining momentum worldwide. Meanwhile, trends towards clean energies are gaining momentum worldwide. Given its large number of oil-dependent countries, this will have profound ramifications for the MENA region. Although the classification of strong and weak green performers has been a contentious process, these data are nonetheless the most reliable sources available to date. Under this classification, Saudi Arabia ranks fourth and is considered a modest performer. Algeria, ranked fifth, is considered a slightly weaker performer (Tagliapietra, 2017, 20). Saudi Arabia is presumed to be in the top group of oil exporters, meaning that oil revenues account for 40% of GDP. Algeria ranks in the second tier, which consists of countries whose oil revenues range from 20 to 40% of their GDP (Tagliapietra, 2017 16). If taken as a common denominator, ‘green energy’ is analytically useful in comparing Saudi Arabia and Algeria as they embark on the path to non-carbon energy solutions. There are several foundational, yet still unanswered, questions about energy sector transformations in petroleum exporting countries. First, why would MENA countries transition to green energy before they exhaust their petroleum reserves? Second, when will commercially viable oil reserves be depleted? Lastly, what are the tradeoffs between economic development and a Green Transition? As Eckart Woertz, the Director of the GIGA Institute for Middle East Studies in Hamburg, argues, the use of clean energy is still limited in the region, particularly compared to Europe (Cochrane). If this is the case, then what incentive structures are likely to influence decision making in this domain? While a complete analysis of these questions is beyond the scope of this paper, establishing a basic understanding of both supply-and demand-side incentive structures serve as a foundation for rational economic and policy decisions. Certainly, reforms and programs are undertaken in MENA countries to switch to clean energy. Both Saudi Arabia and Algeria have proposed programs and reforms that incorporate sustainable objectives. Examples include Algeria’s National Strategy for the Fight Against Poverty (2005–2015) and Five-Year Plan (2010–2014) and Saudi Arabia’s Vision 2030 (Tagliapietra el a. 4). Therefore, given that major industries within these economies are expected to be fundamentally transformed by a Green Transition, it is analytically useful to use a horizontal approach in understanding these complex changes. This essay explores the notion and implications of sustainability in MENA countries, since the challenges are most acute in oil-dependent economies. Specifically, how might the future look if MENA countries successfully transition to predominantly, if not exclusively, non-carbon based sustainable energy resources? The Green Transition in the MENA region is a set towards reforming petroleum extraction, refinement, and export processes.

Preventative Approaches Towards Undeclared Work: A Learning Resource

On 17th November 2020, the Western Balkan Network tackling undeclared work held an online meeting to discuss preventative approaches towards undeclared work. The aim of this learning resource is to document for each preventative approach: (i) the challenges experienced in introducing them; (ii) the ways forward, and (iii) examples of good practice potentially transferable to other economies both from the EU and Western Balkans. To do so, section 2 introduces the four types of preventative policy measure, namely: supply-side incentives; demand-side incentives; education and awareness raising; and modernizing formal institutions. Section 3 provides a review of the challenges and tips for introducing supply-and demand-side incentives that transform undeclared work into declared work by making the conduct of declared work beneficial and easier for employers and workers, and target purchasers of undeclared goods and services with rewards for using declared goods and services. Section 4 then evaluates the implementation of education and awareness raising initiatives which change citizens, workers and employers’ norms, values and beliefs regarding the acceptability of undeclared work. Section 5 reviews the fourth and final type of preventative measure focused upon the modernization of formal institutions. Section 6 then discusses some good practice examples from Western Balkan economies and Section 7 draws conclusions and makes recommendations.

Reducing Road Transport Emissions in Europe: Investigating A Demand Side Driven Approach †

The European Union aims at net-zero emissions by 2050. A key sector to achieve this goal is road transport, where emissions show no signs of reducing but continue to grow. A review of policies undertaken by EU member states and the G20 to reduce transport emissions reveals that both present and planned policies focus on binding supply-side measures, but offer only weak demand-side incentives. To address this imbalance, we developed a downstream, demand-side policy prototype through an expert interview design process. We call the prototype “cap-and-surrender” because it caps road emissions, and then allocates tradable emission allowances to individual vehicles that drivers surrender at each fill-up. Allowance pricing, both by the state and in the secondary market, is designed to incentivize decarbonization of the sector. Though the system would require significant investment, its revenue potential to the state should exceed this investment by several multiples. We discuss the potential economic, environmental and social impacts of the policy, as assessed by European transport experts. We find that the approach can deliver significant transport emission reductions in an effective and economically efficient manner. Through the appropriate design of national allocation rules and a gradual phasing in of cap and surrender, potential negative social consequences can be mitigated, and public acceptance of the policy promoted.

Demand side incentive under renewable portfolio standards: A system dynamics analysis

Renewable Portfolio Standards (RPS) is a mandatory institutional change to realize the low-carbon transformation of energy in China. The success of its implementation depends on the scientific system design. Based on the current situation of the green certificate transaction with the severe shortage of tradable green certificate (TGC) subscription on the demand side of RPS in China and the actual economic situation of the electricity market reform, this paper uses system dynamics to build the market transaction models of benchmark on-grid price and marketed on-grid price respectively, and analyze the incentive effect of the relevant system design of RPS on the demand side of TGC. The results show that: (1) Implementing the marketed on-grid price can effectively stimulate and induce coal power plants to conduct green certificate trading. Compared with benchmark on-grid price, under marketed on-grid price, coal power plants have higher demand for TGC, higher revenue and profit, and better incentive effect. (2)Setting a scientific and reasonable price cap of TGC can effectively stimulate coal power plants to increase the consumption demand of TGC. Therefore, scientific design of the demand-side incentive system of RPS and strengthening of the power market reform will help China to implement the RPS and promote the consumption and utilization of renewable energy.

Forks in the Road to E-Mobility: An Evaluation of Instrument Interaction in National Policy Mixes in Northwest Europe

This paper evaluates how policy shaped the emergence of electric mobility in three countries, Norway, the Netherlands and Denmark, between 2010 and 2015. Whereas previous studies have looked at the effects of separate policy instruments, this paper gives insights in the interaction effects of instruments on the diffusion of battery electric cars between five policy areas. Based on analysis of synergetic, contradictory and pre-conditional effects, we find that an effective policy mix includes: fiscal incentives that mirror the actual carbon footprint of the respective vehicles; non-fiscal demand-side incentives; centrally financed and/or coordinated charging infrastructure; clarity regarding the choice of technology that will be supported. Moreover, development of a domestic, e-mobility-related industry and a high share of renewable energy strengthens the legitimization of e-mobility support. The findings help designing policy mixes in the transition to electric mobility.

A Handbook of Preventative Approaches Towards Undeclared Work

The current focus of state authorities is still heavily upon “deterring” undeclared work using measures that improve the probability of detection and the penalties imposed on those caught. However, this only deals with undeclared work once it has occurred. It is also important to prevent undeclared work from occurring in the first place. The aim of this handbook is to provide a compendium of the range of preventative approaches for tackling undeclared work available to economies. Four types of preventative policy measure are reviewed, namely: supply-side incentives; demand-side incentives; education and awareness raising; and modernizing formal institutions. The outcome is a series of recommendations for the Western Balkan economies: • There should be a shift away from resolving undeclared work after it has occurred and towards preventing undeclared work from occurring in the first place. • Consideration should be given to conducting pilot initiatives of various preventative measures (e.g., in a sector or geographical area) to evaluate their effectiveness. • Using such pilot initiatives, a “test, learn and adapt” evidence-based approach could be adopted. After a pilot (e.g., in a locality or sector), the results can be analyzed, and lessons learned. The follow-up initiative can then use what has been found to work in the pilot. This can again be analyzed, lessons learned, and adaptations made to make it even more effective.