Assessing the Effectiveness of Results-Based Reulations in Fostering Innovation and Social Learning: A Focus on the Saskatchewan Ministry of Environment

Abstract

Results-Based Regulation (RBR) is a hybrid regulation that incorporates some features of a prescriptive regulation, outcome-based regulation, and co-regulation. Traditionally, the environmental activities in Saskatchewan were administered through prescriptive regulation. In 2015, RBR was introduced to substitute the prescriptive regulation. When RBR was introduced, some notable changes were made, and some expected outcomes were stipulated. The core changes that shaped this thesis include the introduction of ‘alternative solutions’ when complying with the regulation, reliance on qualified persons (QP) to certify alternative solutions, and a focus on results. The emphasis on results and the provision of alternative solutions were expected to give room for in-depth research and development, which may induce firms’ innovation activities. This thesis assessed if RBR had led to innovation, especially where a firm decides to follow an alternative solution in achieving the regulatory outcomes. To advance innovation, stakeholders’ interaction was deemed necessary. However, the level of interaction required for advancing innovation should be one that instigates a form of learning where assumptions are questioned, and alternative options considered, creating an avenue for social learning. Thus, the thesis assessed if innovation and social learning have been fostered by RBR? To achieve this objective, it employed a mixed-method approach; primary data were sourced between July and November 2018 through an online survey and semi-structured interviews. Fifty respondents completed the survey. To analyze the survey results, the researcher computed descriptive statistics, conducted a Chi-square test of independence and Spearman’s ranked correlation. For the interview, twenty-two stakeholders participated, and a thematic network analysis was employed to interpret the transcripts. After reviewing related literature and analyzing the survey and interview results, it was discovered that RBR had fostered some firms’ innovation activities. For social learning, some stakeholders’ interactions existed; however, the need to advance social learning through stakeholders’ collaboration was evident. Thus, the researcher recommended the formation of a collaborative risk management committee (CRMC) comprised of stakeholders within related environmental activities. The CRMC may deliberate on collaborative risk management processes (CRMP) with the objective of enhancing environmental protection, reducing non-compliance, advancing social learning and encouraging innovation. The research findings and recommendations may inform future policy decisions for regulating environmental resources in Saskatchewan and other jurisdictions that are currently implementing or proposing to implement the RBR.