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Investigating a new policy model: principles based regulation. A case-study on the effects of principles based regulation for policy that regulates emissions.

Tanke, M.G.J. (2011) Investigating a new policy model: principles based regulation. A case-study on the effects of principles based regulation for policy that regulates emissions.

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Abstract:This research has been conducted as part of the master Public Administration at the University of Twente. An alternative style of policy making – principles based regulation – is explored in this study that is more in line with current societal tendencies of reallocating responsibilities, budget cuts and an information asymmetry between the regulator and norm subjects. The research can be characterized as a case-study on emissions regulation. The main research question is formulated as: “What are the expected effects in terms of incentives for entrepreneurs to innovate when applying a principles based approach to policy that regulates emissions?”. Multiple experts from the emissions domain have been interviewed in order to examine multiple relevant variables that have been identified from theory. The key conclusion of this study is that two conditions for innovation are positively affected by principles based regulation. First of all, the role and responsibilities of an actor is – in principles based regulation – better attuned to the amount of knowledge an actor possesses. Secondly, norm subjects will demand innovation in order to reduce the risk of non-compliance and acquire an acceptable rate of uncertainty. In the short term, principles based emissions regulation is unlikely to enhance innovation, because the market of technology suppliers in which system innovations occur is mature and oriented on the global market. The focus of principles based regulation on future emission requirements does however provide a necessary condition for innovation in the medium and long term. Principles based regulation allows room for an integrated approach in which a comprehensive environmental assessment leads to more cost-effective decisions. Nevertheless, multiple risks have to be reduced and preconditions should be settled before principles based emissions regulation can actually become successful in practice.
Item Type:Essay (Master)
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:88 social and public administration
Programme:Public Administration MSc (60020)
Link to this item:http://purl.utwente.nl/essays/62977
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