The Role of the Organization for Economic Cooperation and Development in Environmental Policy Making

This article examines the role of the Organization for Economic Cooperation and Development (OECD) in providing information, analysis, and recommendations to facilitate effective and efficient environmental policy making in its member countries. It describes the OECD's organizational and operational structure and processes in the environmental area. Past and current efforts to promote environmental and economic policy integration are also discussed, including the role of political economy issues, as well as policy principles and instruments such as the polluter-pays principle, the user-pays principle, benefit–cost analysis, and the OECD's approach to sustainable development. OECD activities to generate and disseminate data and other information for environmental decision making are described. The article also examines legal instruments used by the OECD to encourage member countries to improve their environmental performance as well as experience with peer pressure, and the environmental performance peer review program in particular, in ensuring compliance with OECD recommendations. The article concludes by suggesting ways in which the OECD can better assist member and nonmember partner countries to improve the effectiveness and efficiency of their environmental policies in the future.