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A Guide to Extracting Information from Environmental Pressure Groups

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  • Eric Nævdal
  • Richard Brazee

Abstract

This paper examines the relationship between environmental pressure groupsand environmental policy makers. Environmental pressure groups are assumedto possess valuable private information on environmental issues.Environmental pressure groups are also assumed to pursue their ownpreferences, which are only partially correlated with policy makers'preferences. A new aspect is that binding contracts with side payments arenot allowed, which accurately describes the interaction betweenenvironmental pressure groups and governments. It is shown that by choosingprobabilities of acting on environmental pressure groups' signals, adecision maker can force environmental pressure groups to reveal superiorinformation even in the absence of binding contracts. Copyright Kluwer Academic Publishers 2000

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File URL: http://hdl.handle.net/10.1023/A:1008389431896
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Bibliographic Info

Article provided by European Association of Environmental and Resource Economists in its journal Environmental and Resource Economics.

Volume (Year): 16 (2000)
Issue (Month): 1 (May)
Pages: 105-119

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Handle: RePEc:kap:enreec:v:16:y:2000:i:1:p:105-119

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Web page: http://www.springerlink.com/link.asp?id=100263

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Keywords: asymmetric information; environmental decision making; truth-telling;

References

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  1. Theodore Groves & John Ledyard, 1976. "Optimal Allocation of Public Goods: A Solution to the 'Free Rider Problem'," Discussion Papers 144, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  2. Green, Jerry R & Laffont, Jean-Jacques, 1978. " An Incentive Compatible Planning Procedure for Public Good Production," Scandinavian Journal of Economics, Wiley Blackwell, vol. 80(1), pages 20-33.
  3. Becker, Gary S, 1983. "A Theory of Competition among Pressure Groups for Political Influence," The Quarterly Journal of Economics, MIT Press, vol. 98(3), pages 371-400, August.
  4. Groves, Theodore & Ledyard, John O, 1980. "The Existence of Efficient and Incentive Compatible Equilibria with Public Goods," Econometrica, Econometric Society, vol. 48(6), pages 1487-1506, September.
  5. Hurley, Terrance M. & Shogren, Jason F., 1997. "Environmental Conflicts and the SLAPP," Journal of Environmental Economics and Management, Elsevier, vol. 33(3), pages 253-273, July.
  6. Burton, Peter S., 1996. "Land Use Externalities: Mechanism Design for the Allocation of Environmental Resources," Journal of Environmental Economics and Management, Elsevier, vol. 30(2), pages 174-185, March.
  7. Cropper, Maureen L. & William N. Evans & Stephen J. Berard & Maria M. Ducla-Soares & Paul R. Portney, 1992. "The Determinants of Pesticide Regulation: A Statistical Analysis of EPA Decision Making," Journal of Political Economy, University of Chicago Press, vol. 100(1), pages 175-97, February.
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Cited by:
  1. Anger, Niels & Böhringer, Christoph & Lange, Andreas, 2006. "Differentiation of Green Taxes: A Political-Economy Analysis for Germany," ZEW Discussion Papers 06-03, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Anger, Niels & Böhringer, Christoph & Oberndorfer, Ulrich, 2008. "Public Interest vs. Interest Groups: Allowance Allocation in the EU Emissions Trading Scheme," ZEW Discussion Papers 08-023, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Goodhue, Rachael E. & Gruere, Guillaume P. & Klonsky, Karen, 2002. "Public Preferences, Pressure Groups, And Public Policy Regarding Multifunctionality In Agriculture: Compatibility And Conflict," 2002 Annual meeting, July 28-31, Long Beach, CA 19595, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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