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Non-mandatory Approaches to Environmental Protection

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Author Info
 Khanna, Madhu
Abstract

The approach to environmental protection has been evolving from a regulation-driven, adversarial "government-push" approach to a more proactive approach involving voluntary and often "business-led" initiatives to self-regulate their environmental performance. This has been accompanied by increasing provision of environmental information about firms and products to enlist market forces and communities in creating a demand for corporate environmental self-regulation by signaling their preferences for environmentally friendly firms. This paper provides an overview of the non-mandatory approaches being used for environmental protection and surveys the existing theoretical literature analyzing the economic efficiency of such approaches relative to mandatory approaches. It also discusses empirical findings on the factors motivating self-regulation by firms and its implications for their economic and environmental performance. It examines the existing evidence on the extent to which information disclosure is effective in generating pressures from investors and communities on firms to improve their environmental performance. Copyright 2001 by Blackwell Publishers Ltd

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Article provided by Blackwell Publishing in its journal Journal of Economic Surveys.

Volume (Year): 15 (2001)
Issue (Month): 3 (July)
Pages: 291-324
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Handle: RePEc:bla:jecsur:v:15:y:2001:i:3:p:291-324

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  1. Rinaldo Brau & C. Carraro, 2004. "The economic analysis of voluntary approaches to environmental protection. A survey," Working Paper CRENoS 200420, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
  2. Maria Garcia-Valiñas, 2007. "What level of decentralization is better in an environmental context? An application to water policies," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 38(2), pages 213-229, October. [Downloadable!] (restricted)
  3. R. Bracke & J. Albrecht & M. De Clercq, 2006. "The use of negotiated environmental agreements: from gentlemen’s agreements to binding contracts," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 06/415, Ghent University, Faculty of Economics and Business Administration. [Downloadable!]
  4. Rasha Ahmed & Kathleen Segerson, 2006. "Collective Voluntary Agreements and the Production of Less Polluting Products," Working papers 2006-18, University of Connecticut, Department of Economics, revised May 2007. [Downloadable!]
  5. Fares, M. & Rouvière, E., 2006. "Voluntary Approaches to Food Safety : A Unified Framework," Working Papers 200615, UMR MOISA : Marchés, Organisations, Institutions et Stratégies d'Acteurs : CIHEAM-IAMM, CIRAD, INRA, Montpellier SupAgro, IRD - Montpellier, France. [Downloadable!]
  6. María Teresa Ruiz-Tagle, 2006. "What are the Determinants of Environmental Compliance in the Chilean manufacturing Industry? A case study," Environmental Economy and Policy Research Working Papers 17.2006, University of Cambridge, Department of Land Economics, revised 2006. [Downloadable!]
  7. Rasha Ahmed & Kathleen Segerson, 2007. "Emissions Control and the Regulation of Product Markets: The Case of Automobiles," Working papers 2007-40, University of Connecticut, Department of Economics. [Downloadable!]
  8. Magali Delmas & Maria Montes-Sancho & Jay P. Shimshack, 2007. "Information Disclosure Policies: Evidence from the Electricity Industry," Discussion Papers Series, Department of Economics, Tufts University 0707, Department of Economics, Tufts University. [Downloadable!]
  9. Böhringer, Christoph & Frondel, Manuel, 2002. "Assessing Voluntary Commitments: Monitoring is Not Enough!," ZEW Discussion Papers 02-62, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  10. Iulie Aslaksen and Terje Synnestvedt, 2003. "Corporate environmental protection under uncertainty," Discussion Papers 355, Research Department of Statistics Norway. [Downloadable!]
  11. Oberndorfer, Ulrich & Ziegler, Andreas, 2006. "Environmentally oriented energy policy and stock returns : an empirical analysis," ZEW Discussion Papers 06-79, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  12. Anna Alberini & Kathleen Segerson, 2002. "Assessing Voluntary Programs to Improve Environmental Quality," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 22(1), pages 157-184, June. [Downloadable!] (restricted)
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