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Policy Tools

Policy Tools
 tools used by governments to pursue a desired
outcome.
 interventions made by the government or
public authorities in local, national or
international economies which are intended to
achieve outcomes which conform to the
objectives of public policy
Mandates
 This tool includes rules governing the
actions of individuals and agencies. These
rules oblige those individuals or
organizations to take or not taking certain
actions in the context of the society.
Inducements
 This tool includes transferring of money to
individuals or agencies in return for the
production of goods and services. An
example for inducement can be when an
individual’s electricity consumption is
below certain level; the government pays
for him/her; or receiving coupons for use of
public transport by individuals for not using
their private vehicles.
Capacity building
 This tool is the transfer of money for
purposes of investment in material,
intellectual, or human resources.
System Change
 This tool uses the transfer of authority
among individuals/agencies to implement
the government’s policies. For example,
fully public organization transfers some of
the responsibilities to private sector and in
this way by changing the system into one of
the forms of Public Private Partnership
(PPP) model.

Hortatory Policy
 In this tool, government sends a signal that
particular goals and actions are considered a
high priority. For example, if the
government requires more research on
sustainability, they will announce available
grants for universities. On the other hand,
universities get these signals and start
working on sustainability not only for
inducements but also for other benefits.

 Taxation
 Borrowing
 Economic penalties
 Linking government-controlled benefits or
services to behaviour
 Charges to use public services
 Linking the provision of public services to
behaviour
 The use of formal regulations or legislation
to control behaviour or punish non-
compliance
 Voluntary regulations, including
professional codes of practice and
agreements between governments and other
actors such as unions and business.
 Legal penalties, such as when the courts
approve restrictions on, or economic
sanction
 Public education and advertising to
highlight the risks to certain behaviours. s
against, organisations.
 Providing services and resources to help
change behaviour
 Providing resources or funding org
 Funding organisations to influence public,
media and government attitudes. anisations
to tackle illegal behaviour
 Funding scientific research or advisory
committee work.
 Economic incentives & subsidies
 Organizational change, such as the
establishment of a new unit within a
government department or a reform of local
government structures.
 Providing public services directly or via non-
governmental organizations.
 The use of rhetoric, persuasion and
exhortation – such as public statements on
the behaviour of organisations or arm-
twisting and ear-stroking in private.

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