The Environment and Climate Research Center (ECRC) at the Policy Studies Institute (EfD-Ethiopia) organized a 2-day capacity-building workshop on environmental policy instruments (EPIs) for the alumni of the Inclusive Green Economy (IGE) program from 2021 and 2022, as well as the IGE fellows from 2023 and 2024 on July 5-6, 2024.
The training was facilitated by various scholars and experts, including representatives from the Ministry of Water and Energy, Ministry of Transport and Logistics, Ministry of Agriculture, Ministry of Planning and Development, Petroleum and Energy Authority, and the Environmental Protection Authority.
The workshop began with an introduction by Prof. Alemu Mekonnen from Addis Ababa University and a senior research fellow at ECRC. He discussed the rationale and importance of EPIs, emphasizing the need to classify pollutants in order to develop appropriate EPIs that can achieve efficient levels of pollution and set appropriate pollution targets.
Dr. Abebe Damtie, Researcher at PSI
Prof. Alemu Mekonnen then provided an overview of the various typologies of Environmental Policy Instruments (EPIs), including price-based instruments such as taxes, fees, and charges; rights-based instruments like tradable permits and carbon markets; quantity-type regulations; information-based or legal and regulatory instruments; as well as green nudges. This comprehensive coverage of EPI categories enabled the participants to gain a more nuanced understanding of the different policy tools available for addressing environmental challenges and the specific contexts in which they may be most effectively deployed.
The participants engaged in interactive discussions and hands-on exercises to deepen their understanding of these various EPI approaches and their applications in addressing environmental challenges. Throughout the 2-day workshop, the facilitators provided case studies and examples to illustrate the practical implementation of EPIs in different sectors and contexts. The goal was to empower the IGE alumni and fellows with the knowledge and skills necessary to effectively design, implement, and evaluate environmental policy instruments in their respective roles and organizations.
H.E. Ato Alebel Dessie and Dr. Abebe Damtie
The capacity-building workshop was part of the ECRC's ongoing efforts to support the development of environmental policy expertise and promote sustainable development in Ethiopia. Building on the introductory session, Prof. Alemu Mekonnen delved deeper into the key drivers behind the development of EPIs. He provided an in-depth explanation of how market failure, behavioral biases and anomalies, policy or institutional failure, and property rights issues motivate the need for EPIs.
Prof. Mekonnen then presented case studies and success/failure stories of implementing different policy instruments in various parts of the world, including Ethiopia. This helped to showcase the importance of selecting the most appropriate policy instruments to effectively tackle environmental challenges.
Dr. Zenebe Gebreegziabher, Researcher at PSI
Following this, Dr. Zenebe Gebreegziabher, a Senior Research Fellow, discussed the process of selecting the most suitable EPIs for specific environmental challenges and policy objectives. He explained the key factors to consider when choosing EPIs. Dr. Zenebe Gebreegziabher, a Senior Research Fellow, discussed the key factors to consider when selecting the most appropriate Environmental Policy Instruments (EPIs) for specific environmental challenges and policy objectives. These factors included the efficiency of the policy instrument, its cost-effectiveness, long-term effects, dynamic efficiency, potential ancillary benefits, equity considerations, dependability, feasibility, the cost of uncertainty, and the information required. By providing a comprehensive overview of these crucial criteria, Dr. Gebreegziabher equipped the participants with a robust framework to assess and choose the most suitable EPIs for their respective contexts, ensuring that environmental policies are designed and implemented effectively.
Dr. Abebe also highlighted the role of uncertainty, information asymmetry, politics, and enforcement capacity during the EPI selection process. This led to a lively debate among the participants regarding the policy process in Ethiopia. Many argued that the policies and strategies applied in the country often do not adequately consider the criteria discussed for selecting appropriate EPIs.
Prof. Alemu Abebe, Addis Ababa University
The training provided the participants with valuable insights into the multifaceted aspects and issues involved in the selection of environmental policy instruments. This knowledge is expected to empower the IGE alumni and fellows to make more informed decisions when designing and implementing environmental policies and programs in their respective organizations and contexts.
The final session of the workshop was led by Dr. Abebe Damte, the Director of the Environment and Climate Research Center (ECRC) and a Senior Research Fellow. He discussed the importance of evaluating environmental policies. Dr. Abebe began by explaining the concept of policy evaluation and why it is crucial to assess the performance and impact of environmental policy instruments (EPIs). He then elaborated on the strengths and weaknesses of both ex-ante (before implementation) and ex-post (after implementation) types of evaluation.
Building on this foundational understanding, Dr. Abebe presented various approaches to policy evaluation and shared practical applications of these evaluation methods in the Ethiopian context as well as international examples. The presentation was followed by interactive group discussions and presentations, where the participants had the opportunity to review different national policies, identify gaps, and discuss the advantages, disadvantages, and applicability of the policies. Throughout the 2-day training, the participants actively engaged in interactive sessions, group discussions, and shared their experiences on the practical application of environmental policy instruments in Ethiopia.
In the closing remarks, H.E. Mr. Alebel Dessie, the Deputy Director General of the Policy Studies Institute, congratulated the participants and handed over the training certificates. He encouraged the participants to maintain their network with ECRC and the Policy Studies Institute, and to work together towards a greener future.
The comprehensive workshop aimed to equip the IGE alumni and fellows with the knowledge, skills, and practical insights necessary to effectively design, implement, and evaluate environmental policy instruments in their respective roles and organizations. The participants expressed their appreciation for the opportunity to deepen their understanding of this critical aspect of environmental governance.