Government, Public Policy, and Sustainable Business
Read this chapter to find out more about the interplay between individuals, organizations, and governments in shaping public policy.
How are policies influenced? What factors affect the policy-making process? How does public policy affect innovation and sustainability practices?
3.4 Public Policy Features and Examples
Learning Objectives
- Understand the general process and difficulties of policymaking.
- Describe how policy levers can help shape business sustainability.
- Discuss effective policy design features.
- Describe specific policy instruments and their features.
Markets are useful for efficiently allocating certain types of goods and services and not as useful on their own for allocating other goods and services that are subject to market failures, such as externalities as discussed previously. A key question for government policymakers is what policies might help achieve desired outcomes. Here we focus on the desired outcome for a more sustainable future and review different types of policies and policy levers that can help to shape effective policy development in this area.