ABSTRACT

Chapter 2 lays out the theoretical framework that will be used in the book. It begins by discussing the collective-actions problems inherent in environmental policy controversies. Next, Chapter 2 discusses how markets work to facilitate collection action, followed by a discussion of market failures. When markets fail, governments often step in and attempt to correct for market failures through policy. Then, the chapter discusses the theoretical framework of the book. The framework states that environmental policy choices are made through the processing of information signals by a policymaking system that includes the macro-institutions of Congress, the executive, and the judiciary, as well as various policy subsystems that are organized around specific policy issues. Using publicly available data from the Comparative Agendas Project, the framework, as well as the historical outputs of the environmental policymaking system, is demonstrated empirically. Finally, Chapter 2 concludes with a discussion of environmental policy design, including the various policy instruments available to decision-makers.