Policy Levers with an indirect impact
Policy Levers positioned in the Indirect Impact quadrants are designed to produce outcomes through influence rather than direct enforcement.
In a previous post, we introduced the Policy Design Matrix as a vital tool for categorising and selecting policy options based on their implementation timeline and the implementation mechanism.
We also introduced the concept of Policy Levers, which are tools that policymakers can use to influence outcomes in specific areas; the actionable components of a policy strategy, designed to bring about desired changes or address particular issues.
In this post, we are going to look at the Policy Levers that sit in the two Indirect quadrants of the Policy Design Matrix, which focus on delivering both immediate and gradual results through indirect mechanisms.
Delivering outcomes indirectly
Policy Levers positioned in the Indirect Impact quadrants are designed to produce outcomes through influence rather than direct enforcement.
These levers are essential for shifting public opinion, encouraging specific behaviours, and fostering long-term changes without immediate, direct government intervention.
Policymakers can use Indirect Impact levers to:
Influence public behaviour - Launching campaigns, providing incentives, and using behavioural nudges to shift public attitudes and actions.
Raise awareness - Educating the public about important issues to foster understanding and support for long-term goals.
Encourage stakeholder engagement - Involving stakeholders in a way that promotes cooperation and support for policy initiatives over time.
Although all Policy Levers in the Indirect Impact quadrants focus on influencing behaviour and outcomes, they can be further subdivided into levers that aim for immediate results and those designed for gradual impact.
The Indirect and Immediate Policy Levers
The Immediate and Indirect quadrant includes Policy Levers that influence behaviour and outcomes quickly, though not through direct government action.
These levers are essential for scenarios where the goal is to rapidly shift public opinion, encourage specific behaviours, or raise awareness without direct enforcement. Policymakers can use these tools to create immediate, wide-reaching impacts through more indirect means:
Influence
Description: Use campaigns to shape public opinion.
Example: Running a public health campaign to promote vaccination.
Application: Influence levers are vital for quickly changing public behaviour and attitudes. For example, during a pandemic, a government might launch an extensive media campaign to encourage vaccination.
Subsidise
Description: Providing or removing financial incentives to influence behaviour and support specific activities or industries
Example: Offering subsidies for electric vehicle purchases to reduce carbon emissions.
Application: Subsidies can rapidly encourage desired behaviours by reducing financial barriers. This approach is often used to promote environmentally friendly practices, such as subsidies for renewable energy installations.
Nudge
Description: Apply behavioural insights to guide decisions.
Example: Implementing default options for pension enrollments to increase savings rates.
Application: Nudging subtly guides individuals towards beneficial behaviours without restricting their choices. This can include defaults for healthier food options in cafeterias or automatic enrollment in beneficial programs.
Tax
Description: Levying or reducing financial charges on goods, services, or income to influence behaviour and fund public services.
Example: Introducing a carbon tax to reduce greenhouse gas emissions.
Application: Taxes can be used effectively to change behaviour quickly by altering economic incentives. This two-way lever is crucial for addressing urgent environmental issues, public health concerns, or economic imbalances by adjusting financial costs and benefits.
The Indirect and Gradual Policy Levers
The Gradual and Indirect quadrant focuses on levers that create change over time through indirect mechanisms.
These levers are essential for influencing societal norms and behaviours over time, building capacity, and fostering innovation:
Monitor
Description: Continuously assess compliance and impact.
Example: Setting up long-term air quality monitoring programs.
Application: Monitoring systems provide ongoing data to inform policy adjustments and ensure compliance. Continuous assessment of air quality can help maintain public health standards and guide environmental policies.
Research
Description: Conduct in-depth studies to inform policies.
Example: Conducting longitudinal studies on the impact of education reforms.
Application: Research provides robust evidence to guide long-term policy decisions. Longitudinal studies on education can reveal the effectiveness of reforms and inform future improvements.
Collaborate
Description: Partner with organisations and communities.
Example: Collaborating with technology firms and universities to develop smart city initiatives.
Application: Collaboration combines diverse expertise and resources to address complex issues. By partnering with other organisations, governments can leverage shared knowledge and resources to develop innovative and effective solutions.
Educate
Description: Inform and change public behaviour through structured programs.
Example: Implementing national health campaigns to reduce smoking rates.
Application: Educational initiatives gradually influence behaviour and attitudes by increasing awareness and knowledge. Sustained education programs can lead to long-term behaviour changes, such as improved public health through anti-smoking campaigns
A powerful tool for policy teams
The Indirect Impact quadrants of the Policy Design Matrix contain powerful tools for achieving policy outcomes through influence and long-term engagement.
By leveraging these Policy Levers effectively, policymakers can shape public opinion, encourage desired behaviours, and build sustainable support for policy initiatives.
This structured approach also ensures that policies are not only impactful but also foster broad and lasting changes in society.
To understand how policy levers can be effectively combined into a comprehensive policy portfolio, read our detailed post on Understanding Policy Portfolios.
We can help with developing or reviewing your Policy Portfolio