Public Policy, Policy Analysis, And Cost-Benefit Analysis
Public Policy, Policy Analysis, andCost-Benefit AnalysisYoshitsugu Kanemotokanemoto@grips.ac.jpWeimer and Vining, Policy Analysis, 5th Edition, Longman, 2011.Ch. 2 What Is Policy Analysis?
Outline Whatis policy evaluation? What is policy analysis? Framework of policy analysis Communication of policy analysisresults2
QuestionsWhat is the relationship between policyanalysis in this course and policyevaluation in governments? What are the differences between policyanalysis and academic research in socialsciences? What are the roles of policy analysis? Basic steps in policy analysis? Methodologies used in policy analysis? 3
Types of policy evaluation/policy analysisJapanese TermAmericanTermWhenStarted?Unit ofFocusKey Question“ex is1930’s (Public Decisionworks)1970’s (regreview)What decisionshould ion1960’sProgramDoes management1990’sOperatingorganizationHow canprogram workbetter?Steven Kellman (Kennedy School of Government, Harvard), “Policy Evaluation: Tools to ImproveGovernment and/or to Shrink It ?” International Symposium on Policy Evaluation, 2006.http://www.soumu.go.jp/hyouka/symposium sium result 4.pdf4
What is policy analysis? Policy Analysis Weimer & Vining: Terminology used in the USAIncludes policy evaluation/assessmentAnalysis and evaluation of policy alternatives beforethe choice of a policyPolicy analysis is client-oriented advice relevant topublic decisions and informed by social values. (WV,Chapter 2)Professional ethics for policy analysts Responsibility to the client and analytical integrity (WV,Chapter 3)5
Steps of policy analysisWeimer and Vining 20106
Basic components of policy analysis Understand the problems and construct a frameworkfor analysis Formulate policy alternatives to evaluate This step usually requires most resourcesUse natural sciences, medical sciences, engineering, etc.depending on the policy areaEvaluate the benefits and costs of policy impacts Example: Rail transit vs. Highway networkForecast impacts of each alternatives Example: Urban transportation problems: Rapidurbanization, Traffic congestion, Environmental problemsMarket failure and government failureCost-Benefit Analysis: Evaluation in monetary unitsCost-Effectiveness Analysis, Qualitative CBAEvaluate the reliability of the evaluation results(Sensitivity analysis)7
Basic steps of CBA (BGVW Ch.1) Step 1 – Specify the set of alternative projects.Step 2 -- Decide whose benefits and costs count (standing).Step 3 – Identify the Impact Categories, Catalogue them andselect the measurement indicators.Step 4 -- Predict the impacts quantitatively over the life of theproject.Step 5 -- Monetize (attach dollar values to) all impacts.Step 6 -- Discount benefits and costs to obtain present valuesStep 7 -- Compute the net present value of each alternative.Step 8 -- Perform sensitivity analysis.Step 9 -- Make a recommendation.
Policy Analysis Examples: GRIPS and GraSPPStudents Applicable policy areas are diverse Infrastructure investmentRegulatory impact analysis (assessment) Three Gorges Dam in Hubei, China: A Cost and Benefit Analysis; Cost and Benefit Analysis of CarPlate Controlling Policy：Shanghai Auction vs. Beijing Lottery; Banning Handguns in the United States2012 Student CBA Studies (GraSPP) GRIPS: Korean carbon tax policyGraSPP: Establishment of URS Campus in Jalajala, Rizal, Philippines; Implementing a Zero-Fare Policy for theSao Paulo Metro; Southern Expressway in Sri Lanka; UPass Program in British Columbia2013 Student CBA Studies (GraSPP) GraSPP: Restarting Japan’s Nuclear Power Plants: A Cost – Benefit Analysis; San Francisco – Mocoa(Colombia) Alternate Road; Mitigating Japanese Cedar Pollinosis: A Pigouvian Tax Proposal; Cost-BenefitAnalysis of a Sea Ambulance Project in the Municipality of Alabat in Quezon Province, Philippines2014 Student CBA Studies Taxes, government expenditures, social security, welfare policy2015 Student CBA Studies Social regulation: Health, safety, environmentEconomic regulation: Price, entry, quality, disclosureIntroducing U-Health in Korea for Aging Population; California High-Speed Rail; Tokyo SkytreeConverting Village Health Stations to Birthing Homes; CHENNAI METRO2011 Student CBA Studies (GraSPP) Deep-sea mining of methane hydrate located around Japan’s EEZ; Micro–Hydropower Plant in Nepal;Melamchi Water Supply Project; Building a Village-run Vegetable Processing Factory in Shanghai
Conditions for good policy analysis your answer, the recommendation you make to aclient, rarely by itself determines the quality ofyour analysis. Good analysis askes the rightquestions and creatively, but logically, answersthem. (Weimer and Vining 1999, p. 254)In policy analysis, however, it is more effective tohighlight ambiguities than to suppress them.(Weimer and Vining 1999, p. 255)Your task as an analyst is to reformulateexpressions of symptoms and statements ofpolicy alternatives into coherent analyticalframeworks. (Weimer and Vining 1999, p. 255)10
Policy analysis and social science researchAcademic Social ScienceResearchPolicy AnalysisMajorobjectiveConstruct theories forunderstanding societySystematic comparison andevaluation of alternatives availableto public actors for solving socialproblems"Client""Truth" as defined by thedisciplines, other scholarsSpecific person or institution asdecision makerCommonstyleRigorous methods forconstructing and testing theories,usually retrospectiveSynthesis of existing research andtheory to predict the consequencesof alternative policiesTimeconstraintsRarely external time constraintsStrong deadline pressure -completion of analysis usually tied tospecific decisionGeneralWeaknessOften irrelevant to informationneeds of decision makersMyopia resulting from clientorientation and time pressureExcerpt from D.L. Weimer and A.R. Vining, Policy Analysis, Prentice Hall, 2010, Table 2.1, p.26．11
Role of economics in policy analysis Economics (economic activities) is an importantaspect of policy impactsEconomics (Cost-benefit analysis) provides aframework of integrating non-economic (social,environmental, etc.) factors with economic factors Especially effective in risk evaluation to avoid informationalcascades:Sunstein, C.R., Risk and Reason - Safety, Law, and the Environment,Cambridge University Press, 2002. “economics is both a component of sustainable developmentand that economic analysis provides a framework for bringingthe other dimensions (social, environmental) together for thepurposes of decision making.”Assessing the impacts of spatial interventions: The ‘3Rs’ guidance（Department for Communities and Local Government, UK)12
Cost-benefit analysis in practicecost-benefit analysis seems thoroughlyentrenched in the federal bureaucracy.(p.5, Adler and Posner, 2000.) “if government agencies should employcost-benefit analysis, then they should doso because it is a beneficial tool, notbecause the sum-of-compensatingvariations test or any related test has basicmoral weight.” (Adler and Posner 2000,p.2)
Communication of policy analysis Structure of communication Periodical reports Gaps to be filled must be made clearClear analysis Clear and unambiguous explanationMaintain the attention of the client The client is busyNeed to be timelyExecutive Summary and Table of Contents are necessaryPresent the recommendation firstPresent the most important elements in analysisHeadlines Market failure A smoker bears only a part of the social costs of smokingDo not rely too much on bullets and highlightsDo not rely too much on figures, graphs, and tablesExplanations must concentrate on the logic of analysisCrisp sentencesWeimer and Vining 1999 Chapter 1014
Weimer and Vining 2010 Chapter 1515
Cost-benefit analysis in practice cost-benefit analysis seems thoroughly entrenched in the federal bureaucracy. (p.5, Adler and Posner, 2000.) “if government agencies should employ cost-benefit analysis, then they should do so because it is a beneficial tool, not because the sum-of-compensating-variations test or any related test has basicFile Size: 383KB
A framework for public policy analysis and policy evaluation M. Theo Jans IES research colloqium – 4 September 2007. Policy analysis Public policy focuses on ‘the public and its problems’ (Dewey, 1927) The study of ‘how, why an
Public policy (policy innovation processes, citizen participation, implementation analysis, utilization of policy analysis, risk analysis, regulatory policy and administration). American government and politics (Congress and public policy, legislative behavior, policymaking processes, role of business in politics and public policy). PUBLICATIONS:
The Anti-Racism Policy Analysis Framework consists of the following streams of analysis. The Framework can be applied to any public policy process or government initiative to assess anticipated and real effectiveness in eradicating racial discrimination in public policy. Figure 1. An overview of the Framework's streams of analysis.
ANU ONLINE EDUCATION ACHARYA NAGARJUNA UNIVERSITY, NAGARJUNANAGAR, GUNTUR, ANDHRA PRADESH, INDIA-522510 Lesson 1 PUBLIC POLICY: MEANING, NATURE, SCOPE AND IMPORTANCE Structure: 1.0 Objectives 1.1 Introduction 1.2 Definitions of Public Policy 1.3 Concept of Public and Policy 1.3.1 The Notion of Public 1.3.2 The Notion of Policy
BSc International Social and Public Policy First year Understanding International Social and Public Policy Foundations of Social Policy Research Plus two courses from: Social Economics and Policy Sociology and Social Policy Politics of Social Policy Making Second year Comparative and International Social and Public .
Keywords: Public Policy, Administration, Policy Analysis, Policy Formulation, Policy Evaluation INTRODUCTION Policy making is a multifaceted discipline and activity that cannot be adequately considered apart from the environment in which it takes place, the players involved, and why it is being undertaken. Demands for policy actions are generated in the environment and transmitted to the .
Present ICE Analysis in Environmental Document 54 Scoping Activities 55 ICE Analysis Analysis 56 ICE Analysis Conclusions 57 . Presenting the ICE Analysis 59 The ICE Analysis Presentation (Other Information) 60 Typical ICE Analysis Outline 61 ICE Analysis for Categorical Exclusions (CE) 62 STAGE III: Mitigation ICE Analysis Mitigation 47 .
macroeconomic research and discussion of policy issues between academia, government and the private sector. The Crawford School of Public Policy is the Australian National University’s public policy school, serving and influencing Australia, Asia and the Pacific through advanced policy research, graduate and executive education, and policy .
