Wicked problems and applied economics

Abstract

The term “wicked problems ” is found in many disciplines, including public administra-tion, policy science, health education, ecology, forestry, and business administration, but the term is relatively unknown in applied eco-nomics. Applied economics needs to become better acquainted with wicked problems; they are pervasive, and they present challenges if applied economics is to retain its relevance in today’s world. This paper explores these challenges but is necessarily exploratory, as widespread recognition of the complexity of wicked problems is leading to new kinds of research, but these research approaches are still evolving. My basic thesis is that normal science assumptions and approaches are in-adequate for addressing the complexities of wicked problems in a policy context, but that science, including social science, remains cru-cial for the development of alternative poli-cies. This exploration, therefore, is about both the characteristics of postnormal science nec-essary to inform alternative policies designed to address wicked problems as well as their implications for policy contributions from ap-plied economics. Because many wicked prob-lems involve sustainability issues, I will focus mainly on sustainability problems. Wicked vs. Tame Problems Examples of wicked problem issue areas in-clude terrorism, global climate change, nuclear energy, healthcare, poverty, crime, ecological health, pandemics, genetically modified food, water resource management, trade liberaliza-tion, the use of stem cells, biofuel production