Adaptive policy mechanisms for transboundary air pollution regulation: Reasons and recommendations

In the context of transboundary air pollution policy the broad ambition is to achieve reductions in the level of environmental and societal damage associated with certain pollutant concentrations and exposure rates in a cost effective manner. Policy formulation and legislative frameworks in this field, such as the current National Emissions Ceiling Directive in the European Union, are challenged by the degree of scientific complexity involved, the dispersed sources of emissions, and the inherent uncertainties associated with long range forecasting under these conditions. This paper identifies the reasons why varied forms of adaptive policy mechanisms (also termed flexibilities) are necessary and valuable in this arena. We present the critical considerations for their design and operation, review a selection of the more prominent options currently considered in the associated transboundary research community, and conclude with recommendations for the next set of transboundary air pollution policy frameworks.

► We identify many forms of adaptive policy mechanisms (flexibilities) for transboundary air pollution policy.
► Their roles and their capacity to address uncertainty and specific types of outcome are varied.
► Their design can mitigate potential increases in environmental effect risks and abatement cost risks for participants.
► Transboundary air pollution policy may require a ‘package’ of flexibilities to offer adequate response mechanisms.
► Ex ante scenarios and sensitivities are illustrative but do not incorporate any flexibility into the process.