Defra / EA Fellowship: Professor Frances Bowen

Lead Research Organisation: Queen Mary University of London
Department Name: School of Business and Management

Abstract

This project will fund a fellowship placement for a mid-career researcher to work for 9 months with the better regulation teams at the Department for Environment, Food and Rural Affairs (Defra) and the Environment Agency (EA). 'Better Regulation' is the UK government's approach to developing regulation that achieves the desired outcome while avoiding unintended consequences and limiting costs for companies, consumers and the taxpayer. For Defra and the EA, the challenge is to improve, simplify, consolidate and even remove environmental regulations, while achieving at least equivalent outcomes for the environment, society and the economy. Academic research can offer useful guidance on how to tackle this challenge through providing evidence on the impacts, costs and benefits of various approaches to environmental regulation.

The project will enable a researcher who specialises in company responses to environmental regulation to provide their expertise to Defra and the EA. During the fellowship the researcher will (1) collate research evidence on the relationships between environmental regulation, innovation, firm performance and economic growth, and (2) consult these and other government agencies to develop an action plan for future research collaboration on better regulation for a sustainable economy.

Planned Impact

The primary beneficiaries of this project will be the sponsoring government agencies, Defra and the EA. The UK government's coalition agreement makes several specific commitments on regulatory reform intended to reduce the burden of regulation on the UK economy (HM Government, 2010). Defra is responsible for 400-500 groups of regulations that together impose direct annual costs to businesses of £4-8bn or around 0.4-0.9% of the UK's GDP (Defra, 2011). As part of the Cabinet Office's Red Tape Challenge, Defra has already begun the process of improving, simplifying, consolidating and even removing environmental regulations (Defra, 2012a), and is now continuing these efforts with the Smarter Environmental Regulation Review (Defra, 2012b). This project will support Defra and the EA by synthesising research evidence to support decision-making. It will help improve the environmental benefits of, and reduce unnecessary burdens of compliance to environmental regulation, thus contributing to sustainable growth in the UK.

The secondary beneficiaries of this project are two-fold: (1) other local and central government agencies that might learn from Defra/the EA's processes and approach and (2) companies and others that need to comply with the regulations. Complying with complex and often duplicated environmental regulations that have evolved piecemeal over time imposes unnecessary frustration and administrative burdens on companies and other enterprises. This project will contribute to decreasing this administrative burden for companies, estimated at £287m (Defra, 2011), decreasing the social cost of environmental protection.

Finally, the academic community will benefit from this project, not only in the direct sense of publishing a coherent synthesis of the research literature on voluntary environmental regulation, but more importantly through gaining understanding of how environmental regulation is implemented in practice. There is an active and engaged global community of researchers studying firm responses to environmental regulation. But very few of these researchers have first-hand experience of working within a regulatory agency. The project offers a rare opportunity for the fellow to share insights on the regulatory process so that future academic research can be better informed of the practical and political possibilities of innovative regulatory approaches. The fellow could also share new expertise on the better regulation process, environmental regulation in practice and on evidence-based policymaking in courses such as QMUL's new Masters in Public Administration.
 
Description Environmental regulators in many countries face the challenge of maintaining high quality environmental protection and supporting their governments' economic growth policies. How can environmental regulatory policy both protect the natural environment and help drive the innovation and investment needed for longer-term economic growth? The ESRC, the UK's Department for the Environment, Food and Rural Affairs (Defra) and the Environment Agency (EA) jointly initiated this knowledge exchange project to explore environmental regulation and its effects on innovation, growth and business behaviours and the links between them, and investigate the scope for new approaches to regulation.

This project had two primary objectives, one focusing on research findings (objective 1), and one on capacity-building and knowledge exchange (objective 2):

Objective 1. To collate research evidence on which approaches to environmental regulatory policy would best support a sustainable economy, focusing on the relationships between environmental regulation, innovation, growth and firm performance.

Objective 2. To explore the rationale for future research collaboration on regulation for a sustainable economy and make appropriate recommendations on what form of future collaboration would be most valuable.

In order to achieve these objectives, Professor Frances Bowen conducted a 9-month policy placement at Defra. She was physically located with the Better Regulation Team at Defra that is responsible for delivering the UK government's commitments to streamline and simplify environmental regulations in the short term, and horizon scanning for broader regulatory reform in the long term.

Key Findings

Question 1: What does current research show about environmental regulation, innovation, growth and firm performance?

In order to answer this question, Professor Bowen conducted a systematic review of the literature on the relationships between environmental regulatory reform actions and economic growth. The review included not only academic literature, but also over 30 reports commissioned by Defra and other non-academic agencies on the actual and potential effects of regulation. The consensus view is that the impact of environmental regulation on growth depends on the regulatory design and the specific context. What this project adds to the literature is a sharper sense of which mechanisms link environmental regulation and growth, how and over what timescale.

Based on the review, Professor Bowen developed a framework including six mechanisms linking environmental regulatory reform with economic growth: infrastructure, investment in skills, innovation, inefficiency, information and integration ('the 6Is'). Mapping the growth mechanisms against specific regulatory instruments revealed some 'sweet spots' where sound evidence shows that specific environmental regulatory approaches may enhance business productivity, output, efficiency or lower costs. The review showed that using information-based regulation to drive changes in business behaviours has the potential to multiply positive links between environmental protection and economic growth. However, more research is needed on the unintended consequences of alternatives to traditional regulation such as industry self-regulation, certification or ranking schemes.

Question 2: How might the ESRC and environmental policy-makers collaborate to drive this agenda forward in the future?

On a strategic level, Professor Bowen held discussions with senior Defra and EA analysts on the importance of understanding dynamic business responses to environmental regulations, as well as their static net economic costs and benefits.

The rationale and form of several potential collaborative projects were discussed, particularly on information-based regulation and alternatives to traditional regulation. Some of these ideas have already been taken forward as part of other ESRC initiatives, such as within the ESRC's recent Sustainable Prosperity strategic steer in the 2014 large grants and centres call, and a proposed joint research initiative between Defra and other government departments on Evaluating Policy in Complex Systems. Professor Bowen also provided input into Defra's new Network Evidence Strategy (June 2014), which identifies smarter regulation as a Strategic Evidence Priority area to drive environmental innovation and business growth. Other suggested projects have so far not been taken forward due to the current public sector budgetary constraints.
Professor Bowen continues to collaborate with Defra's Better Regulation Team and the EA to link specific academics with policy teams as opportunities arise (e.g. hosted visits by Prof Neil Gunningham from Australia National University and Prof Tom Lyon from the University of Michigan).

On a more practical level, one of the most valuable aspects of the fellowship for Defra and the EA was that Professor Bowen was able to draw together a large body of research and relationships with others across Whitehall who were also interested in the relationships between business regulation, innovation and growth. The project helped build the long-term relationships needed to connect current and future civil servants with valuable past relationships and research, and to build a platform for a more ambitious research agenda in the future.
Exploitation Route The primary use of this research in non-academic contexts is by government departments and regulatory agencies responsible for regulating and influencing behaviours. The research focused on firm responses to environmental regulation, but many of the insights may also be relevant to firm responses to a wide range of regulation such as behaviours relating to health and safety, rural development, housing, energy management, product labelling etc. Representatives of several government departments have expressed an interest in applying this research approach to their own work, including the Department for Energy and Climate Change (DECC), the Department for Business, Innovation and Skills (BIS), and the National Audit Office (NAO).

The 6Is framework is already being put into use within the Department for Environment, Food and Rural Affairs (Defra) to communicate how the department can contribute to growth. As part of the project, Professor Bowen worked with Defra's Strategy Hub team to provide a sound evidence base and a conceptual framework for a 'Growth Roadshow'. The roadshow will provide staff development across Defra's policy teams on the connections between Defra's activities and growth. The Environment Agency is also interested in sharing the findings with its staff as it rolls out communications in response to new duties to have regard to growth in the Deregulation Bill that is currently under consideration in parliament.

More specifically, the project suggested several critiques and extensions to Better Regulation initiatives within Defra and across other government departments. These have been shared with teams within Defra, across Defra's regulatory delivery network, the Better Regulation Delivery Office (BRDO) and Better Regulation Executive (BRE), and the cross-whitehall group on the economics of regulation. During the project, Professor Bowen presented and gained feedback on the project from more than a dozen different groups in Whitehall and the Defra network, led three workshops on research methods and approaches, gave three keynote addresses to policy audiences, and met with over 60 individuals to discuss the project and its findings. This fellowship has laid the foundation for the ongoing relationships required to shape the conceptual foundations of more effective regulatory delivery in the future.
Sectors Environment,Government, Democracy and Justice

 
Description The project delivered findings in two core areas: 1. the relationships between environmental regulation and growth (particularly information-based regulation), and 2. exploring the rationale for future research collaboration between the ESRC, Defra and other government departments. Findings from each of these areas are currently being used by senior civil servants across several UK government departments and by the ESRC itself. Objective 1: research findings on information-based regulation. The Regulatory Policy Committee (RPC) at the UK's Department for Business, Innovation and Skills (BIS) plans to use some of the information-based regulation part of the project in training its economists and policy teams. During the project, Professor Bowen developed a 2x2 matrix identifying the types of information-based regulation, and new roles for regulators implied by each of these types. The RPC would like to develop good practice guidelines for Better Regulation teams across Whitehall, and has commissioned Professor Bowen to complete more work including a decision-making tool in this area. The refined findings will be used in training BR teams on regulatory alternatives later in 2015. The information-based regulation 2x2 matrix has also been fed into the Cabinet Office's Horizon Scanning Programme on the Future of Regulation. The matrix was used at a Roundtable hosted by the Cabinet Office in September 2014 to facilitate analysis of the future of regulation across a wide variety of sectors beyond energy and the environment (e.g. regulating medical devices, small business, rental accommodation, trading standards). This programme of work is continuing at the Cabinet Office. The Better Regulation team within Defra are using findings from the project to re-shape how they use twitter conversations and social networks to inform regulatory policy, especially on regulatory inspections and visits. Professor Bowen has worked with the team to change how they analyse, attempt to influence and learn from social network data around regulatory issues. The Deregulation Bill has not yet completed its progress through parliament. However, when it does the Environment Agency plans to use some of the findings from the project to implement the new Growth Duty for Regulators. Objective 2 - explore rationale for future research collaboration The ESRC, Defra, Department for Energy and Climate Change (DECC), Environment Agency and Food Standards Agency have continued to develop relationships initiated during the project, and are developing a large-scale research initiative funded by the ESRC on Evaluating Policy in Complex Systems. This is expected to be launched in Spring 2015.
First Year Of Impact 2014
Sector Agriculture, Food and Drink,Energy,Environment,Government, Democracy and Justice
Impact Types Economic

 
Description BEIS Better Regulation Executive Network of Experts
Geographic Reach National 
Policy Influence Type Participation in a guidance/advisory committee
Impact The Better Regulation Executive has asked representatives from leading organisations with an interest in, and experience of delivering better regulation to join its 'Network of Experts'. The group has been established to contribute to a shared goal of creating an innovation-friendly regulatory environment. By doing so we hope to make a positive contribution to supporting economic and business growth and place the UK at the international forefront of innovation-friendly economies. Objectives of the group The network will use the following objectives to guide its development. The network will: • provide an opportunity to share real-world learnings, thinking and experiences and seek to encourage members to create stronger relationships with other experts and use their experience and expertise to achieve improved outcomes; • share links with key policy officials to facilitate the sharing of knowledge and expertise to inform policy making and development across Whitehall; • provide greater exposure to the work of leading academics and innovative thinkers to support the work of the network, policy leads and regulators; • create an opportunity to creatively challenge established thinking and approaches, with the benefit of good evidence, research and experience, to support the creation of innovation-friendly regulatory environment and better regulation for the future.
 
Description Defra's Smarter Environmental Regulation Review (SERR) and Better Regulation initiatives
Geographic Reach National 
Policy Influence Type Contribution to a national consultation/review
Impact During the project, Professor Bowen was physically located for 2-3 days a week in the Better Regulation Team's office at Defra's HQ in Nobel House. She provided advice, guidance and supporting evidence for a range of ongoing initiatives within the BR Team. The project developed the evidence base for more concrete critiques and extensions to Phase 2 of the Smarter Environmental Regulation Review. Specifically, Phase 2 will (1) focus on user behaviours as well as perceptions; (2) adopt a more nuanced approach to when transparency-based regulation might work and (3) focus on integrating regulatory reform actions across regimes.
 
Description Future of Regulation Roundtable
Geographic Reach National 
Policy Influence Type Contribution to a national consultation/review
Impact I was invited to participate in a Cabinet Office Roundtable on the Future of Regulation as part of the Joint Intelligence Committee's Horizon Scanning Programme. The final outputs have not yet been produced, but I am optimistic that the report will highlight the importance of information-based regulation (as developed as part of this project).
 
Description Growth duty for non-economic regulators (implementing the Deregulation Bill)
Geographic Reach National 
Policy Influence Type Influenced training of practitioners or researchers
Impact Provided advice and practical guidance to Defra's regulatory community - including representatives of the Environment Agency (EA) and the Animal and Plant Health Agency (APHA) - on how to respond to the new growth duty for non-economic regulators in the current Deregulation Bill. The full impact of this will not be clear unless and until the Deregulation Bill is passed (in 2015) and non-economic regulators begin to implement its provisions. The impact should be to develop practical tactics for regulatory agencies to be able to meet the dual goals of environmental protection and growth.
 
Description Make it Work: Towards a roadmap for future EU environmental regulation
Geographic Reach Europe 
Policy Influence Type Influenced training of practitioners or researchers
URL http://www.ieep.eu/assets/1951/MIW_London_Workshop_Minutes.pdf
 
Description Written and oral evidence to House of Commons Environmental Audit Committee Enquiry
Geographic Reach National 
Policy Influence Type Contribution to a national consultation/review
URL http://www.parliament.uk/business/committees/committees-a-z/commons-select/environmental-audit-commi...
 
Description NEMODE Digital Economy
Amount £2,986 (GBP)
Organisation Engineering and Physical Sciences Research Council (EPSRC) 
Sector Public
Country United Kingdom
Start 12/2014 
End 03/2015
 
Description Short Projects on Better Regulation
Amount £9,570 (GBP)
Funding ID RE140200BIS 
Organisation Department for Business, Energy & Industrial Strategy 
Sector Public
Country United Kingdom
Start 11/2014 
End 06/2015
 
Description Regulating and Influencing for Growth Community of Practice 
Organisation National Audit Office
Country United Kingdom 
Sector Public 
PI Contribution This is a new collaboration that began during the fellowship when members of the 'Regulating and Influencing' cluster at the National Audit Office (NAO) became aware of the project. 'Growth' is one of the NAO cluster's two strategic priorities, and they are in the process of building a new community of practice across the various NAO disciplines on growth. We are currently negotiating the exact terms of a partnership to take forward research-informed policy on the relationships between regulation and growth. The collaboration continued in 2015, as Professor Bowen participated in the NAO's study on reducing regulation (report due mid-2016).
Collaborator Contribution The Community of Practice is hosted at the NAO.
Impact Multidisiplinary across social sciences, particularly economics, management accounting and regulation.
Start Year 2014
 
Description Better Regulation Units Awayday 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact I gave a keynote address at the annual Defra-hosted awayday for the Better Regulation Executive and departmental heads of Better Regulation Units across Whitehall. The event was held the week before the 2017 General Election, and was intended to take a fresh look at the Better Regulation agenda, how it has evolved since 2010 and what it could or should aim to be in the next parliament. After the event, I was approached by several Better Regulation departmental heads for individual meetings / training relevant to their own government department.
Year(s) Of Engagement Activity 2017
 
Description Breaking the environment-growth trade-off: Harnessing innovation and information 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact Professor Bowen made a presentation on the roles of innovation and information in regulation and growth at a launch event for the Agriculture Theme Red Tape Challenge. Other presentations at the lunchtime event at Defra open to all staff were made by Lord de Mauley, the parliamentary under secretary of state for natural environment and science, and Katrina Williams, DG for Strategy, Evidence and Customers at Defra.

After this presentation, several policy teams in Defra invited me to come to talk with them about the links between environmental regulation and growth.
Year(s) Of Engagement Activity 2013
 
Description British Academy / ESRC Workshop on Sustainable Prosperity 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Other academic audiences (collaborators, peers etc.)
Results and Impact Contributed a 'thought provocation' as part of this event, which was attended by over 80 academics from across and beyond the social science disciplines. Focus was on the role of information in shaping governance and behaviours in a sustainable society.

After my talk, several academics approached me for further conversations, ultimately resulting in a joint application for funding from the ESRC large grants and centres call.
Year(s) Of Engagement Activity 2014
 
Description Cross-Whitehall Group on the Economics of Regulation 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact Presented the results of the project to government economists across Whitehall departments, focusing on the three theories of growth and how these might be supported by different regulatory approaches.

Several subsequent requests for the presentation to share it with home departments
Year(s) Of Engagement Activity 2014
 
Description Defra Better Regulation Team Away Day 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact Led a workshop session as part of the Better Regulation Team Away Day on the 6Is and growth. Attended the team away-day for Defra's 25-person Better Regulation Team. Led a 60 minute discussion on what growth is and how the Better Regulation team might contribute to it.

Several members of the Better Regulation Team later participated in my fellowship, and shared their expertise with me to improve the delivery of the grant
Year(s) Of Engagement Activity 2013
 
Description Defra's Better Regulation House of Commons Showcase 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact Participated in a networking and dissemination event at the House of Commons hosted by Owen Paterson, Secretary of State for Environment, Food and Rural Affairs, and Oliver Letwin, Minister for Government Policy in the Cabinet Office. Event was attended by 100+ environmental regulatory practitioners from both the public and private sectors.

n/a
Year(s) Of Engagement Activity 2014
 
Description Future of Regulation lunchtime learning series at the Environment Agency 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Professional Practitioners
Results and Impact The Environment Agency began a new lunchtime 'Opening Minds' seminar series on the Future of Regulation. My session was on Information Based Regulation, and explored the types of, and trends in information-based regulation used to influence compliance in the energy, environment and food areas. Around 15 staff attended, primarily from the Environment Agency's headquarters in Bristol. Feedback from the organiser: "I have had really good feedback from staff about how much they enjoyed the seminar and the opportunity it gave them to think a little differently and to make connections with you in relation to their work at the moment."
Year(s) Of Engagement Activity 2017
 
Description Keynote Address at the National Audit Office's annual seminar for Better Regulation Units 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact Professor Bowen gave the keynote address at the opening of the NAO's annual gathering for better regulation professionals across Whitehall. Participants in the annual seminar rated this address as the highlight of the day's programme, and Professor Bowen was subsequently invited to speak with several other groups by members of the audience. This was the beginning of an ongoing collaboration between Professor Bowen and the NAO

Participants in the annual seminar rated this address as the highlight of the day's programme, and Professor Bowen was subsequently invited to speak with several other groups by members of the audience. This was the beginning of an ongoing collaboration between Professor Bowen and the NAO
Year(s) Of Engagement Activity 2013
 
Description Obstacles to infrastructure planning 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? Yes
Geographic Reach Local
Primary Audience Professional Practitioners
Results and Impact Participated in a panel discussion on obstacles to planning for large infrastructure projects from business, legal, planning and regulatory perspectives. Attended by practicing environmental lawyers and planners in London

n/a
Year(s) Of Engagement Activity 2013
 
Description Prosperity and protection: New tools to improve growth and compliance 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact Led a 2-hour workshop on the links between regulation and changes in firm behaviours at Defra's 'Building Regulatory Community' Event. This is the quarterly gathering of regulators from across the Defra network, and led to several other invitations to lead similar workshops in agencies over the subsequent months (e.g. Rural Payments Agency; Environment Agency).

I subsequently discovered that one of the participants had reported detailed notes of my presentation to her colleagues at the Better Regulation Executive at the Department for Business, Innovation and Skills (BIS). This led me to be invited to tender for some follow-on work 6 months later, and to an invitation to apply for BIS' Regulatory Policy Committee.
Year(s) Of Engagement Activity 2014
 
Description Regulating and Influencing for Growth 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact Presentation to practitioners across the National Audit Office's (NAO) Regulation, Consumers and Competition theme on three theories of growth and how each might be supported through regulating and influencing. The second in a series of seminars Professor Bowen has conducted at the NAO, and part of the foundation for an emerging new collaboration with the NAO.

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Year(s) Of Engagement Activity 2014
 
Description Seminar on Selection of Regulatory Interventions 
Form Of Engagement Activity Participation in an activity, workshop or similar
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Policymakers/politicians
Results and Impact Led a seminar with the director and senior managers of the Environment Agency's Future Regulation Team on issues to consider in selecting regulatory options. Was subsequently invited back to give a more focused session to inspection and enforcement teams. Some of the seminar materials will be captured in a 3-minute YouTube podcast with voiceover for distribution as part of ongoing staff development throughout the Environment Agency.

The Environment Agency expressed interest in rolling out the key findings presented to all staff as part of their communications about the new growth duty for regulators in 2015.
Year(s) Of Engagement Activity 2014
 
Description Understanding business compliance behaviours 
Form Of Engagement Activity A talk or presentation
Part Of Official Scheme? No
Geographic Reach National
Primary Audience Professional Practitioners
Results and Impact Led a seminar for senior managers at the Rural Payments Agency to help them understand business responses to information and compliance requirements.

n/a
Year(s) Of Engagement Activity 2013